The effect of the interest rate in the Federal Bank on the Egyptian economy and the price of gold

The interest rate decisions of the Federal Reserve (Fed) in the United States can have an indirect impact on the Egyptian economy and the price of gold. Changes in the interest rates set by the Fed can affect global capital flows and investment patterns. When the Fed raises interest rates, it can attract investors to the US market, leading to a decrease in capital flows to other countries, including Egypt. This can put downward pressure on the Egyptian economy and potentially impact the value of the Egyptian pound.

As for the price of gold, it is considered a safe haven asset and is often influenced by changes in global interest rates. When the Fed raises interest rates, it can strengthen the US dollar, which in turn can affect the price of gold. A stronger US dollar usually leads to a decrease in the price of gold, as it becomes more expensive for investors holding other currencies.

However, it's important to note that the Egyptian economy and the price of gold are influenced by various factors, including domestic economic conditions, global market trends, geopolitical events, and investor sentiment. Therefore, the impact of the Fed's interest rate decisions should be considered in conjunction with these other factors.