Gold prices rise as global trade tensions escalate
The global price of gold
Gold seems to be regaining its luster as a safe haven with the escalation of trade headwinds, especially in light of the lack of clarity about the ability of major economies to avoid a full-scale trade war, and gold prices on Tuesday witnessed a rebound to trade around the levels of 3,360 dollars per ounce, offsetting the slight decline recorded in the previous session.
This rise comes as markets focus on recent developments in US trade policy, which are expected to affect the movement of investment flows and safe assets such as gold.
US President Donald Trump announced the sending of letters to 25 countries, informing them of the imposition of new customs duties at a rate of 30% on their imports, scheduled to be applied starting from the first of August next.
The measures target major trading partners such as the European Union and Mexico, in a move that could exacerbate global economic tensions.
Not only that, Trump warned that any reaction from these countries by raising their tariffs on US products could be met with higher sanctions from Washington.
However, he kept the door open to the possibility of resuming negotiations before the new resolutions come into force.
On the other hand, investors attention is turning today to the US inflation data represented by the Consumer Price Index, which may give important hints about the expected path of interest rates from the Federal Reserve.
Weekly Gold Analysis
Gold Price in Egypt
The price of gold in Egypt
Gold prices rose in Egypt on Tuesday, with the 21st highest traded gold in Egypt now trading at yesterday's levels at 4660 pounds.
The price of 24-carat gold in Egypt also recorded levels of 5326 pounds, while 18-carat gold is trading at levels of 3994 pounds per gram.
On the other hand, the price of the dollar is trading on Tuesday in Egypt at the levels of 49.30 pounds, but the dollar price inside the official banks in Egypt fell to the levels of 49.51 pounds, the dollar price in the black market also fell to the levels of 49.77 pounds.
