Gold Prices Decline Following U.S.-Japan Trade Deal and Treasury Yield Recovery
Gold prices witnessed a sharp drop in both local and international markets by mid-day trading on Wednesday, as a wave of profit-taking followed the yellow metal's climb to a five-week high. The improved risk appetite in global markets also weighed on precious metals, traditionally considered safe-haven assets.
In Egypt, the price of 21-karat gold fell by EGP 30 to record EGP 4,680 per gram. Meanwhile, the international ounce price lost approximately $42, dropping to $3,390.
The price of 24-karat gold reached EGP 5,349 per gram, while 18-karat gold recorded EGP 4,011. The price of the gold pound fell to EGP 37,440.
Yesterday, prices had closed with local gains of EGP 25. The 21-karat gold started the day at EGP 4,685 and ended at EGP 4,710, while the ounce surged from $3,399 to $3,432.
U.S.-Japan Trade Deal Lifts Market Sentiment
Investor risk appetite rose significantly after the United States and Japan announced a historic trade agreement late Tuesday. U.S. President Donald Trump described it as 'the largest ever.' The deal includes a 15% tariff on Japanese car imports to the U.S. and the establishment of a $550 billion Japanese investment fund to be deployed within the United States.
Global Markets: Stable Dollar, Lower Oil Prices
At the same time, the U.S. dollar saw modest gains, and yields on 10-year Treasury bonds rebounded from a two-week low—raising the opportunity cost of holding non-yielding assets like gold.
Meanwhile, U.S. Treasury Secretary Scott Bissonnette announced that negotiators from the U.S. and China would meet next week in Stockholm to discuss an extension of the deadline to reach a new trade agreement. This announcement added further optimism to markets and reduced demand for safe-haven assets.
Fed Policy Uncertainty Lingers
Despite the improved risk appetite, uncertainty surrounding the Federal Reserve's monetary policy continues to cast a shadow over global markets. President Trump intensified his pressure on the Fed, renewing his call for interest rate cuts and directly demanding the resignation of Fed Chair Jerome Powell. He also urged the Treasury Secretary to launch a comprehensive review of the Fed's policies—raising serious concerns over the institution's independence.
Markets now turn their attention to the upcoming Federal Reserve policy meeting scheduled for July 29–30, with expectations leaning toward a rate hold amid a lack of clear signals for imminent changes in monetary direction.
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
Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters
Arts & Culture
"Jurassic World Rebirth" Gets Streaming Date
News
China Launches Largest Ever Aircraft Carrier
Videos & Features
Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall
Lifestyle
Get to Know 2025 Eid Al Adha Prayer Times in Egypt
Arts & Culture
South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle
Business
Egyptian Pound Undervalued by 30%, Says Goldman Sachs
Sports
Get to Know 2025 WWE Evolution Results
News
"Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence"
News
Flights suspended at Port Sudan Airport after Drone Attacks
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al-Ahram Weekly
6 hours ago
- Al-Ahram Weekly
US Fed poised to hold off on rate cuts, defying Trump pressure - Economy
The US central bank is widely expected to hold off slashing interest rates again at its upcoming meeting, as officials gather under the cloud of an intensifying pressure campaign by President Donald Trump. Policymakers at the independent Federal Reserve have kept the benchmark lending rate steady since the start of the year as they monitor how Trump's sweeping tariffs are impacting the world's biggest economy. With Trump's on-again, off-again tariff approach -- and the levies' lagged effects on inflation -- Fed officials want to see economic data from this summer to gauge how prices are being affected. When mulling changes to interest rates, the central bank -- which meets on Tuesday and Wednesday -- seeks a balance between reining in inflation and the health of the jobs market. But the bank's data-dependent approach has enraged the Republican president, who has repeatedly criticized Fed Chair Jerome Powell for not slashing rates further, calling him a "numbskull" and "moron." Most recently, Trump signaled he could use the Fed's $2.5 billion renovation project as an avenue to oust Powell, before backing off and saying that would be unlikely. Trump visited the Fed construction site on Thursday, making a tense appearance with Powell in which the Fed chair disputed Trump's characterization of the total cost of the refurbishment in front of the cameras. But economists expect the Fed to look past the political pressure at its policy meeting. "We're just now beginning to see the evidence of tariffs' impact on inflation," said Ryan Sweet, chief US economist at Oxford Economics. "We're going to see it (too) in July and August, and we think that's going to give the Fed reason to remain on the sidelines," he told AFP. - 'Trial balloon' - Since returning to the presidency in January, Trump has imposed a 10 percent tariff on goods from almost all countries, as well as steeper rates on steel, aluminum and autos. The effect on inflation has so far been limited, prompting the US leader to use this as grounds for calling for interest rates to be lowered by three percentage points. Currently, the benchmark lending rate stands at a range between 4.25 percent and 4.50 percent. Trump also argues that lower rates would save the government money on interest payments, and floated the idea of firing Powell. The comments roiled financial markets. "Powell can see that the administration floated this trial balloon" of ousting him before walking it back on the market's reaction, Sweet said. "It showed that markets value an independent central bank," the Oxford Economics analyst added, anticipating Powell will be instead more influenced by labor market concerns. Powell's term as Fed chair ends in May 2026. - Jobs market 'fissures' - Analysts expect to see a couple of members break ranks if the Fed's rate-setting committee decides for a fifth straight meeting to keep interest rates unchanged. Sweet cautioned that some observers may spin dissents as pushback on Powell but argued this is not necessarily the case. "It's not out-of-line or unusual to see, at times when there's a high degree of uncertainty, or maybe a turning point in policy, that you get one or two people dissenting," said Nationwide chief economist Kathy Bostjancic. Fed Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman have both signaled openness to rate cuts as early as July, meaning their disagreement with a decision to hold rates steady would not surprise markets. Bostjancic said that too many dissents could be "eyebrow-raising," and lead some to question if Powell is losing control of the board, but added: "I don't anticipate that to be the case." For Sweet, "the big wild card is the labor market." There has been weakness in the private sector, while the hiring rate has been below average and the number of permanent job losers is rising. "There are some fissures in the labor market, but they haven't turned into fault lines yet," Sweet said. If the labor market suddenly weakened, he said he would expect the Fed to start cutting interest rates sooner. Follow us on: Facebook Instagram Whatsapp Short link:
Egypt Independent
8 hours ago
- Egypt Independent
An emboldened China eyes more concessions from US at Stockholm trade talks
Hong Kong — For the third time in as many months, US and Chinese officials will meet in Europe for trade talks — and this time, Beijing is arriving at the negotiating table more emboldened than ever. Its firm grip on strategic minerals has compelled the Trump administration to roll back some export curbs on China, including a stunning reversal of the ban on sales of a key Nvidia AI chip. Meanwhile, the Chinese economy has delivered better-than-expected growth months into the trade war, according to government data, posting a record trade surplus that underscores the resilience of its exports as they pivot away from the US market. And just a few days ago, Beijing reinforced its tough posture at a key summit with the European Union, offering little to address the bloc's concerns spanning from trade imbalances to the Ukraine war. When a new round of talks begins in Stockholm on Monday, Chinese negotiators led by Vice Premier He Lifeng are expected to greet their American counterparts with fresh confidence in Beijing's uncompromising, hard-edged approach – and a growing appetite for further US concessions. Treasury Secretary Scott Bessent, who's leading the US delegation, said before the talks in the Swedish capital that the two sides would be working out a 'likely' extension of their trade truce, which currently expires on August 12. The 90-day reprieve, struck at a May meeting in Geneva, held back three-digit tariffs imposed in April that threatened to cut off trade between the world's two biggest economies. The truce was pulled back from the brink of collapse with further talks in London in June, after each side accused the other of reneging on its promises. And now, the Stockholm talks may offer clues as to how much longer that detente can hold – and whether the two countries can further bring down remaining tariffs and address other thorny issues, such as tech restrictions, as they work toward a lasting deal. The latest round of negotiations follows Donald Trump's recent flurry of trade deals with the United Kingdom, Japan, and other trade partners, part of the global tariff war he launched earlier this year. But the US President appears to have dialed down his confrontational approach on China, and has spoken enthusiastically about visiting the country at the invitation of its leader Xi Jinping in the 'not too distant future.' The Nvidia Corp.'s logo on the company's Blackwell GPU chip displayed at the Nvidia AI Summit Japan in Tokyo, Japan, on November 13, 2024. Akio Kon/Bloomberg/Getty Images Josh Lipsky, chair of international economics at the Atlantic Council, said a stopgap agreement was the most likely outcome this week. 'Right now, all signs point to another 90-day continuation where tariffs remain at 30% and negotiations continue – with the likelihood of a Trump-Xi meeting in the fall,' he said, referring to the level of Trump's second-term levies on Chinese goods. 'But just as we learned in the spring, the situation can turn on a dime and whether it's the exit bans or another flash point, this is a fragile ceasefire.' It was recently revealed that a US Commerce Department employee and a Wells Fargo executive have been banned from leaving China by the Chinese authorities, casting a shadow over the talks. US Commerce Secretary Howard Lutnick denounced the ban as 'outrageous.' Nevertheless, Bessent struck a positive tone when announcing the latest round of negotiations, saying 'trade is in a very good place with China.' 'I think we've actually moved to a new level with China, where it's very constructive,' he told Fox Business on Tuesday. Bessent said the two countries would also discuss China's purchase of 'sanctioned' oil from Russia and Iran. On Thursday, Lutnick said the proposed spinoff of popular short-video app TikTok's operation in the US, which is awaiting Beijing's approval, would be part of the discussions as well. For their part, Chinese officials have kept the agenda of the talks vague. In a statement last week, the Commerce Ministry said the two sides will 'continue consultations on economic and trade issues of mutual concern, guided by the principles of mutual respect, peaceful coexistence, and win-win cooperation.' Chinese Vice Premier He Lifeng at the opening ceremony of the third China International Supply Chain Expo in Beijing, China on July 16, 2025. Florence Lo/Reuters Key asks from Beijing For Beijing, a central focus of this week's negotiations are the remaining US tariffs on Chinese imports, according to Chinese experts. At about 55%, the tariff includes a 10% 'reciprocal' tariff the US placed on trade partners in April, 20% levies imposed on China for what Trump said was its role in the flow of illegal fentanyl into the US, and pre-existing duties, according to the White House. Chinese experts say a key priority for Beijing is to seek the removal of the 20% fentanyl-related tariffs. Last month, China announced it would add two more fentanyl precursors to its list of controlled substances, and placed nitazenes – a class of powerful synthetic opioids – on another list of controlled drugs. He Weiwen, a senior fellow at the Center for China and Globalization, a Chinese think tank, told the state-run Global Times that the key focus of this round of talks is to build on agreements reached in previous talks, and push for more 'tangible results.' 'The first priority is resolving the remaining tariff issues, particularly those imposed by the US under the pretext of fentanyl, and the second surrounds how China and the US can further deepen economic and trade cooperation,' said He, who previously served as a diplomat to the US. Beijing may also ask Washington to further roll back technology export controls it has previously imposed on China, including the blacklisting of hundreds of Chinese companies under the Commerce Department's Entity List for trade restrictions, according to Wu Xinbo, director of the Center for American Studies at Fudan University in Shanghai. During his first term, Trump began placing tech restrictions on Chinese firms including national tech champion Huawei. His successor, former President Joe Biden, followed up by broadening the scope of the curbs to a wide swath of categories. 'After this period of US-China rivalry, the US side has come to realize that China holds significant cards – and more importantly, is willing to play them when necessary,' said Wu, who is an adviser to China's foreign ministry. The cards, he explained, refer to America's reliance on China's supply chain, including but not limited to rare earths minerals and magnets – needed for everything from everyday electronics and vehicles to fighter jets. Countless containers stand at the Tollerort container terminal in the port of Hamburg, on July 9, 2025. Marcus Brandt/dpa/Marcus Brandt/picture-alliance/AP At the height of the trade war with the US in April, China leveraged its global dominance in the rare earths supply chain and put new licensing requirements on the exports of seven types of rare earth minerals and several magnets. The significant decline in rare earth exports from China, despite the trade truce reached in May in Geneva, reignited tensions, prompting Trump to take 'countermeasures,' including export controls on chip software, ethane and jet engines. The renewed spat calmed only after the London meeting last month, when Beijing agreed to allow the flow of rare earths and Washington decided to lift its export restrictions. But China has learned the value of its leverage on US. Wu said the country's leverage goes beyond rare earths to – among other things – drone and electric vehicle battery supply chains, where China plays a significant role. The divestment of TikTok US from its Chinese owner ByteDance, which is subject to Beijing's approval, is another card, he said. 'In the past, we didn't consciously use these cards. Now, I believe China will increasingly take the initiative to consider playing them,' he said. On Tuesday, Bessent said he intended to warn Beijing over its continued purchase of sanctioned Russian and Iranian oil, as well as its support for Russia's war against Ukraine. Trump has previously threatened 100% secondary tariffs on goods from countries that continue buying Russian oil, namely China and India, and legislation to that effect has been gaining momentum. Wu said China is unlikely to entertain such a tariff threat and stop importing oil from Russia or Iran, but he said Beijing is aware that the US may leverage the threat, to force its cooperation on issues such as the Russia-Ukraine conflict and talks with Iran.
See - Sada Elbalad
18 hours ago
- See - Sada Elbalad
Oil Prices Fall to Three-Week Low
Taarek Refaat Oil prices dropped on Friday to their lowest settlement levels in three weeks, pressured by signs of weakening economic momentum in both the United States and China, as well as growing indications of increased supply. However, optimism surrounding potential trade deals and policy shifts helped limit the decline. Brent crude futures fell by 74 cents, or 1.1%, to settle at $68.44 per barrel, while U.S. West Texas Intermediate (WTI) dropped 87 cents, or 1.3%, to $65.16 per barrel. Latest Oil Prices: WTI Crude • 65.16 -0.87 -1.32% Brent Crude • 68.44 -0.74 -1.07% Murban Crude • 71.20 -1.13 -1.56% Louisiana Light • 68.65 -1.51 -2.15% Bonny Light • 78.62 -2.30 -2.84% Mars US • 71.56 -1.02 -1.41% Gasoline • 2.097 -0.007 -0.34% Natural Gas • 3.110 +0.016 +0.52% These closing prices mark the lowest for Brent since July 4, and for WTI since June 30. For the week, Brent declined approximately 1%, while WTI posted a 3% loss. Economic data released on Friday painted a picture of slowing industrial activity. In the U.S., new orders for capital goods, a key indicator of business investment, unexpectedly declined in June, pointing to softening equipment spending in the second quarter. Meanwhile, the Chinese Ministry of Finance reported a 0.3% year-on-year decline in fiscal revenues during the first half of 2025, extending a months-long downward trend. These developments sparked renewed concerns about global oil demand just as seasonal factors typically drive consumption higher. On the supply side, markets are watching closely as the U.S. moves to ease restrictions on partners of Venezuela's state oil firm, potentially allowing a modest increase in exports from the heavily sanctioned OPEC member. Analysts at ING estimate Venezuelan exports could rise by over 200,000 barrels per day if the measure is enacted. Iran, another OPEC member under sanctions, also returned to talks with European powers in what it described as 'serious, candid, and detailed' discussions, a sign that further diplomatic engagement could eventually pave the way for increased Iranian crude in global markets. Both countries remain subject to international restrictions, but any shift in their production capacity or export volumes could swell global supply, undermining prices. Meanwhile, European Commission President Ursula von der Leyen confirmed she will meet U.S. President Donald Trump in Scotland on Sunday to discuss trade ties. EU officials expressed hope that a framework agreement could be reached, potentially boosting economic activity and long-term oil demand. Adding to market speculation, Trump said Friday he had a 'good meeting' with Federal Reserve Chair Jerome Powell, and hinted that the Fed may be open to cutting interest rates. A rate cut would reduce borrowing costs, potentially stimulating growth, and energy consumption. 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 Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language
