Thursday 12/June/2025 – 03:54 PM
I witnessed Gold prices A noticeable increase in the local and global markets during Thursday’s trading, supported by the increasing demand for precious metal as a safe haven, in light of the escalation of geopolitical tensions between Iran and Israel, as well as the decline in the performance of the US dollar.
This comes at a time when investors are awaiting new indicators on American monetary policy trends, according to a recent report issued by the “ija’a” platform specialized in following up the movement of gold and jewelry prices.
Gold prices increase in the local market
Said Imbabi, CEO of the “i -Salaf” platform for gold and jewelry trade via the Internet, said that gold prices in the local market witnessed a strong leap of 55 pounds during today’s trading, as the price of a gram of 21 carat gold recorded about 4720 pounds, compared to 4665 pounds at the beginning of yesterday’s trading.
Imbabi added that the price of a gram of 24 carat gold recorded about 5394 pounds, while the price of a gram of 18 carat gold reached about 4046 pounds, and the price of a gram of 14 carat gold was about 3147 pounds.
As for the price of the gold pound, it reached 37760 pounds, in a direct reflection of the market trends affected by global developments.
Gold performance on the global stock exchange
Globally, the gold prices on the World Stock Exchange increased by about 27 dollars to record the ounce of $ 3380. During the trading yesterday, the gold witnessed a local increase at about 10 pounds, as the gram of 21 carat gold opened the transactions at 4665 pounds, and closed it at 4675 pounds. The ounces increased globally by $ 29, moving from the level of 3324 dollars to $ 3353 by the end of trading.
Factors support the rise of gold prices
The “i -satuf” report explained that the continued rise in gold prices comes supported by several factors, on top of which is the escalating political tensions in the Middle East, especially after what NBC reported about the possibility of Israel to launch a military strike against Iran, which raised investor fears and pushing them towards gold as a reliable hedge tool in times of uncertainty.
Besides, the statements of former US President Donald Trump, which included threats to impose new customs duties, contributed to increasing anxiety in the global markets, which strengthened the demand for gold as a value store.
The effect of US dollar decline and inflation on gold
Imbabi pointed out that gold prices also benefited from the recent decline in the value of the US dollar, especially after the issuance of American inflation data that showed a slowdown in the pace of high prices, which opens the door to the Federal Reserve to discuss the option to reduce interest rates later this year.
The US consumer price index data showed the annual inflation to 2.4%, in line with the market expectations, while the basic inflation rate stabilized at 2.8%, which analysts considered a positive indication of the decline in inflationary pressures. This development may support the voices within the American federal that calls for the adoption of a more facilitated monetary policy.
Stay tuned for US producers price index
Meanwhile, the markets are awaiting the issuance of the US producers’ price index data in the coming hours, with expectations that the annual index will increase by 2.6% compared to 2.4% last April, while the basic rate is expected to stabilize at 3.1%. This data is extremely important in drawing features of monetary policy trends during the upcoming meeting of the Federal Reserve on June 17 and 18.
Central bank purchases of gold support its stability
On the other hand, the annual report issued by the European Central Bank indicated that the volume of central bank reserves of gold amounted to about 36 thousand tons, a level that approaches the peak that was before the cancellation of the Bretton Woods system. This data confirms the continuation of central banks around the world to enhance their gold reserves, which provides additional support for the stability of gold prices in the short term.
Positive expectations for the gold path during the coming period
Based on the overall of these data, the positive view of gold is strengthened during the coming period, especially in light of the expectations for reducing American interest rates by 50 basis points before the end of the year, as well as the continued geopolitical and economic pressure that makes gold the preferred option for many investors.
