Gold Prices Tumble as US Employment Data Fuels Rate-Hike Expectations

The price of gold declined in both the Egyptian market and global exchanges on Monday due to strong US employment data and rising oil prices. The Federal Reserve's interest-rate hike expectations strengthened, pushing up Treasury yields and reducing the appeal of non-yielding gold.

The price of 21-karat gold dropped by EGP 35 from last week's close to EGP 6,290 per gram, while 24-karat gold stood at approximately EGP 7,189 per gram. In contrast, 18-karat gold gained EGP 25 during the previous week.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, stated that gold and silver moved in the opposite direction to energy prices, extending their declines after strong employment data lifted bond yields and reinforced expectations of a US interest-rate increase.