Egypt's Gold Prices (per unit):
24-Karat: EGP 5,314
21-Karat: EGP 4,650
18-Karat: EGP 3,986
Gold Pound: EGP 37,200
Local gold prices shift throughout the day, driven by
movements on global gold exchanges, supply and demand dynamics, and investor
sentiment in an unstable economic environment.
New US Escalation Renews Market Concerns:
Tariff issues resurfaced after US President Donald Trump
threatened to impose duties of up to 30% on imports from Mexico and the
European Union, effective August 1, if trade agreements are not reached. This
has heightened fears of a new trade war.
Despite parties having only about two weeks to finalize
deals, markets remain apprehensive about the threats being carried out. Such a
scenario could pressure trading activity and impact safe-haven assets,
particularly gold.
Bond Yields, Dollar Pressure Gold:
This coincided with the continued rise in US Treasury yields
and the appreciation of the dollar index, which acted as a barrier to further
gold price increases. Analysts anticipate that any advance by the precious
metal towards the $3,400 per ounce level would require a clear decline in the
dollar's performance or yields, especially in the absence of strong
geopolitical catalysts.
Anticipation of US Inflation Data:
Investors' attention today is focused on US inflation data,
including the headline and core Consumer Price Index for June. These figures
are expected to shed light on the potential inflationary impact of the
impending tariffs, which in turn could influence monetary policy decisions.
So far, the Federal Reserve has not shown clear inclinations
to cut interest rates, despite expectations of a potential first cut of 50
basis points in September. This remains contingent on economic developments.
Decline in Gold ETF Inflows:
Separately, the World Gold Council announced a decrease in
cash inflows into gold-backed exchange-traded funds (ETFs) during the week
ending July 4. Net inflows amounted to only 3.9 tonnes, less than the average
of the previous three weeks.
This decline is primarily attributed to withdrawals by North American investors, who pulled out the equivalent of 7.6 tonnes, while European and Asian funds recorded positive inflows of 6.5 tonnes and 5.1 tonnes, respectively.