Gold prices remained relatively stable worldwide at the close of trading on Friday, ahead of the international stock exchange holiday on Saturday, following a week of sharp rises and falls.
Anticipation abounds over trade resuming on Sunday with the opening of Asian markets, where experts predict a limited rebound that could push the price of an ounce towards US$5,000 again.
Latest global developments
Gold prices in the early hours of Saturday reflected Friday’s closing price, with the spot price of an ounce reaching $4,968.56, an increase of $189.97 or 3.98 percent, from the previous close, according to Trading Economics.
This rise came in reaction to meager US employment data, as weekly jobless claims surged to 231,000, reinforcing expectations of an interest rate cut by the Federal Reserve.
During the last session, trading ranged between a low of $4,654.50 and a high of $4,972.40, with trading volume reflecting a cautious outlook due to heavy profit-taking at the end of January.
Parchart reports that February gold futures closed at $4,951.20, up $89.80 or 1.85 percent, with a trading volume of 1,386 contracts and open interest of 4,454 contracts, indicating continued speculative interest.
Fortune confirmed that the price opened at $4,931 and then gradually rose, supported by US-Iranian talks in Oman, which observers described as a “good start” to easing geopolitical tensions, though not eliminating all risks.
Yahoo Finance reported a slight weekly decline of 0.33 percent, but a monthly gain of 9.88 percent, with a 52-week high of $ 5,597.23.
The main reason for the recent volatility was margin increases on the Comex exchange. The exchange raised the initial margin for gold futures contracts to nine percent and for silver to 18 percent, marking the sixth increase in two months.
This led to the liquidation of long speculative positions and a temporary dip, but this pressure is not affecting real demand from mines or the industry, according to USA Gold.
The weakness of the US dollar also helped fuel the recent rally, although rising bond yields to 4.247 percent partially limited the gains.
Gold Prices in Egypt
Global developments have impacted the Egyptian market, which witnessed relative stability during trading in the final hours of Saturday, with most jewelry stores closed for the weekend.
According to reports from the Gold Division, a gram of 24-karat gold is currently priced at LE 7,622, while 21-karat gold – the most commonly traded in Egypt – is selling for around LE 6,670, and 18-karat gold is at LE 5,717.
Will it rebound?
With trading resuming on Sunday in Asian markets, experts anticipate a modest rise.
Trading Economics forecasts a price of $5,021.67 by the end of the current quarter and $ 5,346.67 within 12 months.
JPMorgan raised its forecast to $6,300 by the end of 2026, supported by expected central bank purchases of around 800 tons and a “crash trade” favoring real assets.
UBS also forecasts $6,200, while Deutsche Bank and Société Générale predict $6,000, viewing the current dip as a buying opportunity.
The consensus is positive in the medium term, with Goldman Sachs seeing a rise to $5,400, supported by demand from emerging markets, despite potential volatility from margin increases.
Edited translation from Al-Masry Al-Youm
