Thursday 26/June/2025 – 04:28 PM
Gold prices witnessed remarkable stability in the local market during Thursday’s trading, in conjunction with a slight increase in the price of an ounce on the global stock exchange, amid the decline in the US dollar index and the decrease in the returns of US treasury bonds.
This stability comes in a state of anticipation regarding the reduction in interest rates, and the increasing differences between the President of the Federal Reserve, Jerome Powell, and former US President Donald Trump about the timing of the implementation of this reduction, according to a report issued by the “i -saga” platform for gold and jewelry online.
Gold prices in the local market
Saeed Imbabi, Executive Director of the “i -Sawbi” platform, explained that the gold prices in local markets recorded stability in today’s trading, compared to the closure of trading yesterday, Wednesday. Where the price of a gram of 21 carat gold stabilized at the level of 4705 pounds, which is the most trading caliber in the Egyptian market.
As for the gram of 24 carat gold, it recorded 5377 pounds, while the price of a gram of 18 carat gold reached about 4033 pounds, and 14 carat about 3137 pounds. The price of the gold pound stabilized at 37640 pounds, and at the global level, the price of an ounce of gold increased by only one dollar, to reach 3332 dollars.
Gold performance in yesterday’s session
The gold prices in the local market witnessed a slight increase during the Wednesday session, as the gram of 21 carat gold rose from 4700 pounds to 4705 pounds. The ounce on the World Stock Exchange also rose by $ 14, from $ 3317 to $ 3331.
Stability factors in the markets
Imbabi pointed out that the stability of gold prices locally and globally is due to a relative balance between geopolitical and economic factors, despite the continued tendency of investors towards stock markets. However, gold losses were limited due to low confidence in the US dollar, due to conflicting American policies and contradictory statements by decision makers.
The market focus on reducing interest
Imbabi stressed that the attention of investors and markets is currently focusing on the decisions of the US Federalism about reducing interest rates, as American economic data has become a decisive role in shaping monetary policy. This comes at a time when Jerome Powell, the head of the Federal Reserve, concluded his semi -annual testimony to Congress, which lasted for two days and included extensive interrogations about the future of American monetary policy.
Although some central banks around the world reduced interest rates with declining inflation rates, the American federal kept the interest stable within the range of 4.25% to 4.50% throughout the current year. As inflation approaches the target of 2%, speculation increases about the timing of the next interest reduction, amid a division of opinions between decision makers.
American economic indicators pushing the reduction
The recent economic data showed clear indications of the US economy under pressure. The Consumer confidence index issued by the US Conference Council on Tuesday, and new home sales data on Wednesday indicated a weakness in some vital sectors. Powell also expressed his concern that customs duties may increase inflationary pressures, but they will only become clear.
In a positive economic development, the American Statistical Office announced today, Thursday, that the orders of perennial goods increased by 16.4% during May, to reach 343.6 billion dollars, compared to a decrease of 6.6% in April. This reading surpassed the market expectations, which indicated an increase of 8.5%. The transport equipment sector witnessed a significant increase, as it recorded a 48.3% increase to 145.4 billion dollars.
American unemployment subsidies
The US Department of Labor revealed that initial unemployment subsidy requests decreased to 236 thousand for the week ending June 21, compared to 246,000 in the previous week. The moving average decreased for four weeks by 750,000 to 245,000, while continuous unemployment subsidy requests increased to 1.974 million in the week ending June 14.
Trump attacks Powell again
On the other hand, former US President Donald Trump escalated his attack on Jerome Powell during the NATO summit, criticizing his frequency in reducing interest rates. “Fortunately, he will leave, I think he is very bad,” Trump said, in a clear indication of his rejection of the current federal approach.
Geopolitical tensions are declining
On the geopolitical level, the risks were temporarily calmed down with the continued ceasefire between Israel and Iran for the third day in a row, which contributed to reducing the demand for gold and precious metals as a safe haven. However, the fragility of the situation keeps the markets in a cautious state, while attention is currently focused on economic data and monetary policies to determine the course of gold in the coming period.
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Stay tuned for personal consumption expenses
The markets are waiting for the announcement of the US personal consumption expenses for the month of May, which is the federal preferred scale to determine inflation levels. Expectations indicate that any weak reading may push the federal to accelerate the reduction of interest, which may constitute additional support for the price of gold during the coming period.
