Latest news with #WaleedFarouk
See - Sada Elbalad
2 days ago
- Business
- See - Sada Elbalad
Fed Signals Rattle Markets as Gold Struggles to Hold Ground
Waleed Farouk Gold prices in local markets saw a slight increase of EGP 15 on Thursday, supported by escalating geopolitical tensions and ongoing economic uncertainty, despite the relative stability of global ounce prices on the international exchange. The price of 21-karat gold rose to EGP 4,805 per gram, compared to EGP 4,790 at the close of Wednesday's session. Meanwhile, the global ounce price edged down by just one dollar, settling at $3,373. In other karat levels, 24-karat gold recorded EGP 5,491 per gram, 18-karat stood at EGP 4,119, and 14-karat at EGP 3,204. The price of the gold pound increased to EGP 38,440. This comes after a decline in local gold prices on Wednesday, when 21-karat gold dropped by EGP 20, opening at EGP 4,810 and closing at EGP 4,790. Globally, the ounce price declined by $13 during the same session—from $3,385 to $3,372. Today's modest rise in local prices was driven by the continued stability of the global ounce price below the $3,400 mark, influenced by heightened geopolitical tensions—particularly in the Middle East—and persistent concerns over global trade outlooks. The U.S. Federal Reserve's decision to maintain interest rates unchanged has acted as a cap on gold's upward movement. However, the ongoing geopolitical risks continue to support gold demand in the medium term, as investors increasingly turn to the metal as a safe haven. Markets remain on edge following reports of a potential U.S. military strike on Tehran amid growing confrontations with Israel—factors that are reinforcing investment demand for gold in this volatile climate. On Wednesday, the Federal Reserve left interest rates unchanged for the fourth consecutive meeting, holding them in a range of 4.25% to 4.50%. At the same time, it revised its outlook for the next two years, indicating fewer expected rate cuts. Notably, seven out of 19 Fed officials now forecast no rate reductions in 2025. In his post-meeting remarks, Fed Chair Jerome Powell stated that the U.S. economy remains strong and resilient. He noted that inflation indicators are nearing target levels, while the labor market continues to perform well, with unemployment rates hovering near historic lows. The Fed also warned of further inflationary pressures stemming from U.S. trade policies—particularly under President Donald Trump's direction—citing raised inflation targets to 3.6% and 3.4% for 2026 and 2027, respectively. Despite the inflationary backdrop which typically favors gold, the Fed's continued hawkish stance and prolonged high interest rate policy pose a significant headwind that could limit gold's future gains. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean News 3 Killed in Shooting Attack in Thailand
See - Sada Elbalad
2 days ago
- Business
- See - Sada Elbalad
Jerome Powell: The U.S. Economy Is Strong—Interest Rate Cuts Depend on Coming Months
Waleed Farouk Following the latest Federal Reserve policy meeting, Federal Reserve Chair Jerome Powell affirmed that the U.S. economy remains robust and resilient, with inflation moving closer to the central bank's target and the labor market continuing to show historically low unemployment rates. In his post-meeting remarks, Powell announced that the Fed had decided to keep interest rates unchanged, describing the current stance as appropriate for the present and foreseeable economic conditions. However, he noted that a rate cut remains on the table and may or may not occur in the near future, depending entirely on how economic data evolves in the coming months. On the issue of inflation, Powell acknowledged that inflation expectations have risen recently, but remain within a controllable range. Inflation is projected to stabilize at 3% in 2024, with a gradual decline to 2.4% by 2026. He welcomed the recent progress in inflation readings, emphasizing that the long-term inflation trajectory remains aligned with the Fed's goals. Regarding the labor market, Powell described conditions as balanced, despite a slight slowdown in hiring, which he said is not yet a cause for concern. Job creation remains healthy, and unemployment is expected to hold steady at 4.5% this year and next. Turning to broader economic expectations, Powell forecast that the U.S. economy will grow by 1.4% in 2024 and 1.6% in 2025. He warned, however, that trade tensions and tariffs are contributing to an atmosphere of uncertainty, which could gradually affect pricing and business activity. 'The best support we can offer the housing sector,' he added, 'is to achieve price stability.' In closing, Powell stressed that the months ahead will be critical in determining the Fed's next steps, asserting that the central bank will not rush into premature decisions, but will continue to rely fully on actual economic data and global developments. He made clear that all committee members are committed to acting based on data, not political pressure or speculative expectations. 'At present, the Fed is in a very good position,' he concluded, 'and we will act as future developments require.' read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean News 3 Killed in Shooting Attack in Thailand
See - Sada Elbalad
2 days ago
- Business
- See - Sada Elbalad
Hamahami Discusses Ways to Boost Egypt's Gold Jewelry Exports with Industry Manufacturers
Waleed Farouk Dr. Hamdy Hamahami, Head of the Egyptian Assay and Weights Authority, held an extensive meeting with representatives of the Gold and Precious Metals Division at the Federation of Egyptian Industries to explore mechanisms for enhancing Egypt's exports of gold jewelry and addressing the challenges facing manufacturers in this vital sector. The discussions focused on developing the legislative and regulatory framework to facilitate export procedures and open new international markets for Egyptian gold products, especially amid growing regional and global competition in the industry. Dr. Hamahami affirmed the Authority's commitment to supporting local industry and strengthening cooperation with manufacturers and artisans to increase exports and contribute greater value to the national economy. He also noted that the coming period will see a modernization of operational systems, particularly in hallmarking and pricing methods, to align with international standards. For their part, division representatives highlighted the key obstacles facing exporters, especially regarding customs procedures and certification processes for export-ready gold products. They emphasized that Egypt's gold market has the potential to achieve major breakthroughs if the right investment climate is provided and support mechanisms are activated. Both sides agreed to maintain ongoing coordination in the coming period and to work on developing a clear action plan to boost the global competitiveness of Egyptian gold jewelry, in line with the state's goals to increase foreign currency revenues and expand non-oil exports. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean News 3 Killed in Shooting Attack in Thailand
See - Sada Elbalad
3 days ago
- Business
- See - Sada Elbalad
Random Pricing and Declining Dollar Pressure Local Gold Market
Waleed Farouk Gold prices in the local markets declined on Tuesday, despite relative stability in global ounce prices, amid escalating tensions between Iran and Israel and anticipation of the U.S. Federal Reserve's decision regarding interest rates. Gold prices dropped by EGP 20 during Tuesday's trading, compared to the end of yesterday's session, with the price of 21-karat gold falling to EGP 4,810 per gram. Meanwhile, the global ounce price remained stable at $3,385. The price of 24-karat gold recorded EGP 5,497 per gram, while 18-karat gold stood at EGP 4,123, and 14-karat gold was priced at approximately EGP 3,207. The price of the gold pound (eight grams of 21-karat gold) reached EGP 38,480. On Monday, local gold prices had already declined by EGP 70. The 21-karat gram opened at EGP 4,900 and closed at EGP 4,830. Globally, the ounce dropped by $45, starting the day at $3,430 and ending at $3,385. The decline in local gold prices, despite the global ounce stability, was driven by the depreciation of the U.S. dollar in local banks, in addition to the speculative and random pricing practices that dominated the local market in recent days. This has widened the price gap between local and global markets to nearly EGP 200 per gram. On the international front, markets witnessed relative stability, driven by ongoing safe-haven demand due to rising geopolitical tensions in the Middle East, and ahead of the Federal Reserve's interest rate decision. Military escalation between Iran and Israel intensified after American media outlets reported the assassination of senior Iranian Revolutionary Guard commander Ali Shadmani by the Israeli army. In retaliation, Iranian forces launched missile strikes targeting the Mossad headquarters, according to CNBC. In addition to geopolitical unrest, the declining U.S. Dollar Index has supported gold prices. A weaker dollar encourages investors to increase their gold holdings since gold is priced in dollars, making it more attractive when the greenback loses value. Investors are now awaiting the Federal Reserve's monetary policy announcement on Wednesday, with expectations that interest rates will remain unchanged within the current range of 4.25%–4.50%. The Federal Open Market Committee (FOMC) is expected to outline its future monetary policy direction during Fed Chair Jerome Powell's press conference, alongside the release of the "dot plot," which reflects committee members' projections for future interest rate paths. A recent study by the World Gold Council, conducted between February 25 and May 20, 2025, with participation from 73 central banks, revealed that 76% of respondents plan to increase their gold holdings over the next five years, up from 69% in last year's survey. Additionally, 95% of participants expect global gold reserves to grow over the coming year — the highest percentage since the study's inception. The study also indicated a growing trend toward reducing the share of U.S. dollars in central bank reserves, with around 75% of participants intending to cut their dollar holdings over the next five years, compared to 62% in the 2024 survey. Meanwhile, Citibank has revised its short- and long-term forecasts for gold prices downward, indicating that the precious metal could fall below $3,000 per ounce by late 2025 or early 2026, due to weakening investment demand and improving global economic growth prospects, according to a research note released on Monday. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean News 3 Killed in Shooting Attack in Thailand
See - Sada Elbalad
3 days ago
- Business
- See - Sada Elbalad
Gold Strengthens Its Role in Global Central Bank Reserves at the Expense of the U.S. Dollar
Waleed Farouk Global central banks are increasingly shifting their reserve strategies in favor of gold, according to a recent report by the World Gold Council (WGC), reflecting a decline in confidence in the U.S. dollar amid geopolitical instability and economic pressures. The survey, conducted between February 25 and May 20, 2025, and involving 73 central banks, revealed that 76% of respondents expect gold to account for a larger share of their reserves over the next five years, up from 69% in last year's poll. Additionally, 95% of central banks anticipate a global increase in gold holdings over the coming year, the highest level recorded since the survey began. The report also noted that the Bank of England remains the most preferred storage destination for gold, signaling continued trust in the UK's gold custody infrastructure. Gold Prices at Record Highs This strategic shift comes amid a historic surge in gold prices. On April 22, gold reached $3,500 per ounce, marking a 95% increase since Russia's invasion of Ukraine in February 2022. Declining Reliance on the Dollar Conversely, the study indicated a growing trend toward reducing U.S. dollar holdings. Around 75% of central banks plan to cut their dollar-denominated reserves in the next five years, compared to just 62% in 2024. Key Drivers Behind the Shift to Gold The World Gold Council attributed the growing interest in gold to several factors: Its strong performance during crises. Its effectiveness in diversifying portfolios and reducing overall risk. Its role as a hedge against inflation. The council also highlighted that central banks have purchased over 1,000 metric tonnes of gold annually over the past three years, more than double the historical average of 400–500 tonnes during the previous decade. Geopolitical and Trade-Related Concerns The report further showed that 59% of central banks consider trade tensions and tariff risks significant factors in their reserve decisions. This concern is more pronounced in emerging and developing economies, with 69% citing it as relevant, compared to only 40% in advanced economies. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean News 3 Killed in Shooting Attack in Thailand
