Local gold markets have significantly trimmed losses today as global prices rebounded following the release of U.S. Producer Price Index (PPI) data.
According to the “Gold Observatory,” the better-than-expected cooling in U.S. inflationary pressures pushed global gold prices higher, allowing local gold (21-karat) to recover to 5870 EGP by midday.
Dr. Waleed Farouk, Director of the Gold Observatory, noted that the 0.3% drop in the PPI for June has bolstered market hopes for a less hawkish stance from the Federal Reserve.
However, gold remains volatile, heavily influenced by energy costs and geopolitical tensions, as the Fed continues to prioritize price stability while closely monitoring upcoming labor market and inflation indicators.
