Global gold prices experience 2.6% uptick within 1 week: Gold Bullion
Sat May 11 2024
In a remarkable turnaround from its recent downward trend, the global gold market witnessed a significant price rebound last week. Analysts attribute this surge to the precious metal’s appeal, bolstered by the anticipation of potential interest rate reductions, a reaction to the latest labour market figures from the United States.
Over the past week, the spot price of gold soared by 2.6%, peaking at $2,378 per ounce—the highest in a fortnight. By week’s end, gold prices had stabilised at $2,360 per ounce, marking a notable recovery after a fortnight of depreciation, according to insights from Gold Bullion.
Since the onset of May, there has been a 3.3% appreciation in gold prices. Despite this uptrend, the current price is still $71 shy of the previous month’s zenith of $2,431 per ounce.
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Market sentiment now reflects a 61% likelihood of the US Federal Reserve initiating rate cuts as early as September, with the probability increasing to 75% for November.
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In terms of gold demand, the World Gold Council’s recent figures show that in March alone, global central banks netted purchases amounting to 16 tonnes of gold. This activity contributed to a record-breaking first quarter, with a cumulative acquisition of 290 tonnes of gold.
Beyond central banks, the World Gold Council has also identified the State Oil Fund of the Republic of Azerbaijan as a consistent buyer, adding 3 tonnes of gold to its reserves annually. While contributions from sovereign wealth funds are modest, they introduce a new dimension to official gold demand.
Last week, the Egyptian gold market mirrored the global uptrend, with prices climbing after a spell of limited fluctuations. The global price hike lent support, although local factors—such as reduced domestic gold demand and a slight downtrend in the US dollar exchange rate—tempered the rise.
On Saturday, the opening trading price for the widely sought-after 21k gold in Egypt was pegged at EGP 3,135 per gram, maintaining the same level as the previous day’s close. The market had seen a minor dip of EGP 5 from Friday’s opening figure of EGP 3,140 per gram.
Source: https://www.dailynewsegypt.com/