The global gold ounce recorded a 1.8% decline last week, reaching the lowest level in two weeks at $3,329 per ounce after opening the week at $3,399 and closing last week at $3,335 per ounce.
This decline in gold prices last week follows two consecutive weeks of increase, indicating unclear gold trends recently, according to Gold Bullion technical analysis.
Last week, US inflation data was released, with consumer prices coming in higher than expected, but producer price index and retail sales data showed declines, reducing market expectations that the Federal Reserve would cut interest rates significantly by 50 basis points in the September meeting.
Gold prices by purity levels are: 24 carat at 5194 EGP, 21 carat at 4545 EGP, 18 carat at 3896 EGP, and the gold pound at 36360 EGP.
Current expectations indicate the US Federal Reserve will cut interest rates by a quarter point in the September meeting, which markets have priced in; any deviation will cause gold price movements accordingly.
Lower US interest rates are positive for gold prices as they reduce the opportunity cost of holding gold, which yields no return, encouraging investment to shift from US debt markets to gold.
Meanwhile, markets await the results of the summit in Alaska between US President Donald Trump and Russian President Vladimir Putin, described as “high risk,” to discuss the ceasefire agreement in Ukraine.
President Trump warned of “severe consequences” for Russia if Putin obstructs progress toward peace in Ukraine.
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