Chinese Startup Triggers Gold Decline, Sharp Losses in U.S. Stock Market

Gold prices in local markets fell on Monday as global gold prices declined due to a stronger U.S. dollar and significant sell-offs in the U.S. stock market.

The decline also followed President Donald Trump's decision to freeze tariffs on Colombia, according to a report by the "iSagha" platform.

Saeed Embabi, CEO of the "iSagha" online platform for gold and jewelry trading, stated that gold prices in local markets dropped by EGP 15 during today’s trading compared to the close of last Saturday’s session.

The price of 24-karat gold fell to EGP 3,845 per gram, while global gold prices dropped by $14 per ounce to $2,757.

Embabi added that 21-karat gold recorded EGP 3,780 per gram, 18-karat gold reached EGP 3,296, and 14-karat gold stood at EGP 2,564.

The price of a gold pound dropped to EGP 30,760.

According to the weekly report by "iSagha," gold prices in local markets rose by 2% last week, gaining EGP 80. The price of 21-karat gold opened the week at EGP 3,780, peaked at EGP 3,860, and closed at the same level. Globally, gold prices increased by 2.5% during the week, gaining $68 per ounce, opening at $2,703, reaching $2,786, and closing at $2,771.

Embabi noted that while local gold prices generally align with global trends due to the stable exchange rate of the dollar, the local market has seen reduced demand for gold and limited inflow of funds from bank certificates, prompting traders to focus on exports.

Global gold prices declined due to the dollar's strength and a wave of sell-offs in the U.S. stock market, which raised concerns among traders and investors.

Meanwhile, President Trump's decision to avoid imposing tariffs on Colombia, following an agreement on deported migrants, also influenced the market.

Additionally, a Chinese artificial intelligence startup has sparked market fears, raising questions about the high valuations of tech stocks like Nvidia. This has contributed to a decline in the Nasdaq index.

Embabi predicted that the U.S. Federal Reserve is likely to maintain interest rates during this week’s monetary policy meeting. However, he emphasized that President Trump’s actions and decisions now have a more significant impact on gold prices than the Federal Reserve's monetary policy.