Gold Declines Amid Weakening Rate-Cut Expectations and Escalating Global Trade Tensions
Gold prices saw a slight decline during Tuesday's trading session, pressured by a stronger U.S. dollar and waning expectations for imminent interest rate cuts by the Federal Reserve. This comes as concerns mount over the potential fallout from new trade escalation threats made by former U.S. President Donald Trump.
In the local Egyptian market, gold prices fell by around EGP 10 compared to Monday's close. The price of 21-karat gold dropped to EGP 4,635 per gram, while the global ounce price declined by $12 to reach $3,325.
The price of 24-karat gold stood at EGP 5,297 per gram, 18-karat gold at EGP 3,973, and 14-karat gold at EGP 3,090. The price of a gold pound coin reached EGP 37,080.
Gold had recorded a EGP 5 gain during Monday's trading, with 21-karat gold opening at EGP 4,640, dipping to $4,610 per ounce, and closing at EGP 4,645. Globally, the ounce opened at $3,337, dropped to $3,303, and rebounded to close at $3,337, indicating relative stability.
Local Liquidity Constraints and Selling Pressure Weigh on Prices
The local decline is attributed to a liquidity crunch in the Egyptian market, alongside increased resale activity by citizens seeking to capitalize on recent high prices or to generate cash for essential needs.
Gold remains one of the most liquid assets, widely accepted and easily sold without complicated procedures. This makes it a safe haven not only for inflation hedging, but also as a flexible savings tool that can be quickly converted into cash when needed. This explains why many households have opted to liquidate part of their gold savings to cope with rising living costs or to benefit from the price surge.
External Pressures Mount as Dollar Strengthens and Trump Revives Trade Rhetoric
External factors have also played a significant role in gold's decline—chief among them the strengthening of the U.S. dollar and Trump's renewed aggressive trade stance. Trump announced plans to impose a 10% tariff on imports from countries politically aligned with the BRICS bloc, setting August 1 as the implementation date.
Trump also threatened to impose additional tariffs on dozens of Asian and African countries, insisting there would be no exceptions for nations deemed to pursue 'anti-American' policies.
Gold Faces Pressure from Interest Rates, Dollar Strength, and Inflation Fears
Expectations of rising inflation as a result of Trump's proposed tariffs may prompt the Federal Reserve to maintain elevated interest rates for longer than previously anticipated, reducing the appeal of gold, which does not yield interest, and thereby applying additional downward pressure on prices.
Nevertheless, periods of dollar weakness helped curb some of gold's losses, as the greenback struggled to attract buyers amid growing concerns over the U.S. fiscal outlook and uncertainty surrounding the economic consequences of Trump's new trade policies. These factors have helped sustain gold's status as a safe-haven asset.
Markets on Hold as FOMC Minutes Awaited
Global markets are now in wait-and-see mode, anticipating the release of the Federal Open Market Committee (FOMC) meeting minutes on Wednesday, hoping to gain clearer insight into the Fed's monetary policy direction for the remainder of the year.
With no major U.S. economic data due on Tuesday, the Fed minutes are expected to be the main market catalyst, likely setting the tone for currency and commodity movements—especially gold.
The current market environment is characterized by a mix of conflicting factors. The U.S. dollar rose to a two-week high on Monday, intensifying early session pressure on gold, only to be counterbalanced later by rising geopolitical risks and growing risk aversion in equity markets, prompting some investors to return to gold as a hedge.
Cautious Outlook Amid Uncertainty
Gold remains susceptible to further volatility in the coming hours, especially if the upcoming Fed minutes point toward a continued hawkish stance on interest rates, which could renew pressure on prices.
Still, ongoing global concern over the implications of U.S. trade policy, alongside instability in financial markets, may offer temporary support to gold. As a result, the short-term outlook remains highly uncertain, with the potential for movement in either 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
News
China Launches Largest Ever Aircraft Carrier
Sports
Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer
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
Business
Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War
News
Flights suspended at Port Sudan Airport after Drone Attacks
News
"Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence"
Videos & Features
Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream
Technology
50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
See - Sada Elbalad
an hour ago
- See - Sada Elbalad
LemFi Expands International Payment Services to Egypt
Rana Atef LemFi, a leading international payment services startup based in London, with a strong presence across the United States, Canada, the United Kingdom, and Europe, has today announced the launch of its low-cost, reliable international payment services to Egypt. This strategic expansion positions it to provide its service offerings to Egypt's massive diaspora community, building on the country's growing adoption of the digital payments market. The expansion also positions LemFi as a reliable partner across the North Africa corridor, where the company offers its services to the Moroccan and Tunisian diaspora. Egypt is one of Africa's most dynamic and most significant economies. It ranks highly on the global list of significant remittance corridors. In 2024, Egypt received a record $29.6 billion in remittances globally, nearly doubling the previous year's record. In 2023, remittances accounted for 6.11% of its GDP, underscoring the vital role they play in supporting the economy. Recent economic reforms have boosted confidence in its formal financial sector, leading to consistent year-on-year growth in remittances and creating opportunities for international payment partners. This substantial and growing flow of funds underscores the importance of a reliable, efficient, and innovative international payment service provider. A burgeoning diaspora population of skilled workers and residents, many in LemFi-supported countries, can access its reliable, low-cost, and efficient global payment service offerings to support their families and friends back home. 'Egypt's significance as a remittance destination cannot be understated. In recent years, the corridor has experienced consistent growth. Whether in LemFi's existing markets, specifically the United States, or in other markets that align with our global expansion ambitions, the Egyptian diaspora is significant, and they deserve quality service, such as the one we offer.' - Philip Daniel, Head of Global Expansion and Growth, LemFi. LemFi's entry, which supports the Egyptian diaspora, aligns with global economic trends of a growing market, bringing innovative international payments solutions to a market increasingly adoptive of technological innovations. With recent strategic acquisitions and expansions into diverse markets, LemFi has demonstrated the team, resources, and strategies necessary to deliver on the promise of reliability, cost-effectiveness, and value, helping a global diaspora become more financially connected to their home. Since its founding, LemFi has supported over 2 million customers in the United States, the United Kingdom, Canada, and Europe. In January 2025, LemFi secured $53 million in Series B funding, bringing its total funding to over $ 86 million, which involved some leading investors, including Highland Europe, LeftLane Capital, Endeavour Capital, and Y Combinator. Visit to learn more about LemFi. 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 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer 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 Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War News Flights suspended at Port Sudan Airport after Drone Attacks News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
Daily News Egypt
2 hours ago
- Daily News Egypt
Bonyan expects EGX listing before July-end, eyes expansion in administrative, commercial real estate
Shamel Aboul Fadl, CEO of Bonyan for Development and Trade, announced that the company's shares are expected to begin trading on the Egyptian Exchange (EGX) before the end of July. Speaking at a press conference, Aboul Fadl described the coverage of the share offering as 'very positive and better than expected.' Bonyan offered approximately 362.9 million shares valued at EGP 1.8bn, representing around 22% of the company's total equity. The private offering includes 344.8 million shares, while the public tranche comprises 18.1 million shares. The private subscription period runs from Sunday through 10 July, with the public subscription to follow between 11 and 15 July. According to the offering prospectus, the share price range was set between EGP 4.96 and EGP 5.44, with an estimated fair value of EGP 7.52 per share. The minimum investment threshold for high-net-worth individuals in the private offering was EGP 1m, and EGP 10m for institutional investors. Public investors were required to purchase a minimum of 100 shares and a maximum of 200,000 shares. To support the offering, a price stability fund has been established to fully cover the public tranche for a 30-day period, ensuring the share price does not drop below the offering level. Existing shareholders are subject to a mandatory lock-up on 51% of shares for two years, with a six-month voluntary lock-up on the remainder. An additional support fund, covering 15% of the total offered shares, was allocated for the private offering and will be activated if needed. Aboul Fadl noted that the EGP 7.5 per share valuation was determined by an independent financial advisor based on asset values and comparable market transactions. He added that the company's fair valuation stands at EGP 12.5bn after adjustments. Regarding the use of offering proceeds, he explained that Bonyan's debt accounts for just 8% of its total portfolio value, due to the impact of high interest rates. Of the EGP 1.8bn raised, EGP 1.55 billion is secondary and EGP 250m is primary capital. Any future capital increases will be directed toward expansion. Bonyan's operating model is based on acquiring existing buildings and leasing them to multinational or large Egyptian corporations. The company currently owns approximately 150,000 square metres of property, with 75% comprising office space and 25% commercial malls. Its real estate portfolio includes 10 assets—nine office buildings and one mall—with an occupancy rate of about 93%. Around 60% of tenants are international companies, with the remainder being local firms. Looking ahead, Aboul Fadl said the company plans to expand its footprint in administrative and commercial real estate and is currently studying seven new assets in East Cairo. The most suitable of these will be acquired soon, he said, adding that profitability is expected to improve in 2025 due to the repricing of expiring contracts signed under previous cost structures. Despite the challenges posed by rising interest rates and higher operating costs, Bonyan posted a net profit of EGP 2.6bn in 2024. Aboul Fadl attributed the strong performance to the company's 'dynamic management' strategy, which focuses on asset efficiency and risk diversification. He also highlighted a series of strategic acquisitions completed in 2022, which form the foundation for future growth. These assets are still under development, with returns expected to begin appearing in the company's financials starting in 2025. Aboul Fadl stressed that Egypt's real estate market remains among the most promising in the region, supported by limited supply and growing demand. This imbalance continues to drive price increases and reinforces real estate's position as a strategic, low-risk investment. Citing international analyses, including reports from JP Morgan, he said real estate investments in Egypt yield annual returns exceeding 14%, with more than 70% of that return derived from capital appreciation rather than rental income. He estimated the current demand gap in Egypt's real estate market at between 4.5 and 6.5 million square metres. This gap presents significant opportunities for developers to launch new projects, particularly in East Cairo, the New Administrative Capital, and 6th of October City. Outlining the company's long-term strategy, Aboul Fadl said Bonyan follows a 'Core + Value Add' investment model, combining acquisitions of immediately income-generating assets with those requiring development or refurbishment to unlock additional value. 'We're not chasing quick wins,' he said. 'We rely on detailed market analysis of supply and demand and focus on assets tied to strategic sectors such as education, administration, and healthcare—sectors that offer long-term growth and resilience.'
Daily News Egypt
2 hours ago
- Daily News Egypt
Egyptian authorities race to contain fallout from fatal telecom fire
Egyptian authorities on Tuesday raced to contain the fallout from a fatal fire at a key Cairo telecommunications hub, suspending the stock market, doubling cash withdrawal limits, and working to reroute disrupted internet and phone services. The response came after a blaze late on Monday at the Ramses Central building killed four workers and injured at least 22 others, triggering a nationwide disruption of critical services. Minister of Communications and Information Technology Amr Talaat said on Tuesday that all telecommunication services would be gradually restored within 24 hours by redirecting traffic through alternative exchanges. 'The Ramses Central will remain out of service for several days,' Talaat said, adding that affected users would be compensated. He stressed that emergency services and other essential systems were operating normally in most areas. To mitigate the economic impact, the Central Bank of Egypt (CBE) took proactive measures, temporarily raising the daily cash withdrawal limit for individuals and companies to EGP 500,000 ($10,400) from EGP 250,000 to facilitate transactions amid the disruption. The Egyptian Exchange (EGX) suspended all trading for the day, calling it a necessary step to 'uphold market integrity and investor confidence' after technical and operational challenges made it impossible to ensure fair and orderly trading. Other government bodies also moved to ensure the continuity of essential services. The Ministry of Supply and Internal Trade confirmed that the distribution of subsidised bread was proceeding without interruption. Minister Sherif Farouk explained that the system's resilience was due to dispensing machines being equipped with multiple SIM cards, allowing them to switch between mobile networks. At Cairo International Airport, the Ministry of Civil Aviation announced that operations had returned to normal after initial disruptions. It said alternative solutions were implemented to restore the operating system across all terminals, allowing affected flights to take off. State-owned operator Telecom Egypt, which runs the Ramses exchange, issued a statement mourning the four employees who died in the blaze, calling them 'martyrs of duty.' 'With heavy hearts, Telecom Egypt mourns the heroes who demonstrated the highest levels of dedication and sacrifice, remaining at their posts until the final moments to protect telecom infrastructure and serve the nation,' the statement read. The victims died from smoke inhalation after being trapped inside the building, authorities said. As of Tuesday evening, civil defence teams were still conducting cooling operations at the site while an investigation into the cause of the fire got underway.
