Egypt achieves record primary budget surplus of EGP 629bn despite sharp fall in Suez Canal revenues    Escalation in Gaza, West Bank as Israeli strikes continue amid mounting international criticism    Egypt recovers collection of ancient artefacts from Netherlands    Resumption of production at El Nasr marks strategic step towards localising automotive industry: El-Shimy    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, UNDP discuss outcomes of joint projects, future environmental cooperation    United Bank achieves EGP 1.51bn net profit in H1 2025, up 26.9% year-on-year    After Putin summit, Trump says peace deal is best way to end Ukraine war    Jordan condemns Israeli PM remarks on 'Greater Israel'    Egypt's Supreme Energy Council reviews power supply plans for 14 industrial projects    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Egypt prepares to tackle seasonal air pollution in Nile Delta    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egyptian pound closes high vs. USD on Tuesday – CBE    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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Gold prices steady ahead of Fed rate hike decision
Published in Amwal Al Ghad on 26 - 09 - 2018

Gold prices drifted in a narrow range on Wednesday as investors awaited cues of the U.S. Federal Reserve's two-day meeting, where policymakers are expected to raise interest rates for the third time this year.
Spot gold was up 0.1 percent at $1,201.64, as of 0337 GMT, having moved in a $3 range early Wednesday.
U.S. gold futures climbed 0.1 percent to $1,206.0 an ounce.
“People are waiting for cues from the Fed … I think the Fed will stay the course. But they could mention that the trade war (between China and United States) could impact growth,” National Australia Bank economist John Sharma said.
The Fed will end its two-day policy meeting later on Wednesday at which it is expected to raise interest rates for the eighth time since late 2015. Investors are also counting on another rate hike before year-end, though the outlook for 2019 is less clear.
“The Fed may incite recent softness in housing and auto sales, as well as a rather mixed “Beige Book” survey out last week that could conceivably justify moderation in its rate outlook,” INTL FCStone analyst Edward Meir said.
“We think the dollar will weaken post statement, and say this in view of the fact that it has been progressively selling off ahead of the Fed meeting, telling us that investors are likely discounting relatively dovish wording.”
A strong dollar makes dollar-priced gold costlier for non-U.S. investors, while rising U.S. interest rates typically deter investors from buying a non-yielding asset such as gold.
The dollar index, which weighs the greenback against a basket of six major currencies, was flat at 94.143.
Gold dropped about 12 percent since hitting a peak in April, marred by rising U.S. interest rates and a global trade war that has led investors to choose the dollar as a safe haven rather than gold.
“People are realising that the trade war is likely going to continue. It is benefiting the U.S. dollar now, but it could affect the U.S. economy as well, hurting the dollar (and boosting gold),” Sharma said.
U.S. President Donald Trump's top trade official said on Tuesday that changing China's economic policies to become more market-oriented “is not going to be easy” even with tariffs now in place on $250 billion worth of Chinese goods.
Among other precious metals, spot palladium slipped 0.1 percent to $1,059.65 an ounce, drifting away from its late-January high of $1,068.50 hit in the previous session.
Silver gained 0.6 percent to $14.50, hovering near a more than three-week high of $14.56 reached on Tuesday.
Platinum edged 0.1 percent lower to $821.55 per ounce.
Source: Reuters


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