Local gold prices declined during mid-trading on Monday, despite a rise in the price of an ounce on the global exchange, supported by a decline in the US dollar and lower oil prices, coinciding with investors awaiting the US Federal Reserve meeting this week, at a time when the sharp drop in the dollar exchange rate against the Egyptian pound limited the pace of price increases in the local market.
The price of 21-karat gold gram fell by about 60 pounds compared to last week's close, recording about 5,940 pounds, while the ounce rose by about 34 dollars compared to last week's close to record 4,087 dollars.
The price of 24-karat gold gram recorded about 6,789 pounds, and 18-karat gold gram reached about 5,091 pounds, while the gold pound recorded about 47,520 pounds.
Gold prices had risen by about 180 pounds during last week's trading, as 21-karat gold gram opened trading at 5,820 pounds and touched 6,010 pounds during the week, before closing near 6,000 pounds, while the ounce rose by about 36 dollars, after opening trading at 4,017 dollars and closing at 4,053 dollars.
The decline in gold prices in the local market, despite the global rise in the ounce, is due to the sharp decline in the dollar exchange rate in the local market, which fell from 51.42 pounds to about 50.70 pounds, with the continued improvement in the performance of the Egyptian pound, coinciding with calm geopolitical conditions in the Middle East region after the cessation of hostilities between the United States and Iran, which was directly reflected in the cost of gold pricing in the local market.
The global ounce has risen since the beginning of July by about 68 dollars, or 1.7%, compared to the June close of 4,017 dollars, while the price of 21-karat gold gram in the local market rose by about 255 pounds, or 4.5%, compared to the level of 5,685 pounds at the end of June.
The local price premium fell to about 122 pounds per gram, after ending last week's trading at about 160 pounds, indicating a decline in pressures resulting from the exchange rate and an improvement in supply availability.
On the basis of performance since the beginning of the year, the global ounce is still down by about 233 dollars, or 5.4%, compared to the opening price of the year at 4,318 dollars, while the price of 21-karat gold gram locally rose by about 110 pounds, or 1.9%, compared to the opening price of the year of 5,830 pounds, reflecting the continued outperformance of the local market over global performance since the beginning of the year as a result of exchange rate effects and local factors.
Gold prices rose on the global exchange during trading today, Monday, starting the week with gains supported by the decline of the US dollar and lower oil prices, while investors await the US Federal Reserve meeting this week, looking for any new signals regarding the path of interest rates during the coming period.
The price of an ounce rose to about 4,093 dollars during trading, while US futures rose to about 4,096 dollars, at a time when the dollar index recorded a decline of about 0.2%, which enhanced the attractiveness of gold to investors holding other currencies.
Markets this week are receiving exceptional attention with the Federal Reserve meeting, as expectations indicate that interest rates will be held steady, while investors are focusing on the US central bank's statement and the press conference of its chairman, to monitor any signals regarding the future of monetary policy during the coming months.
Analysts believe that the decline in oil prices by more than 5% after easing geopolitical concerns in the Middle East contributed to calming inflationary pressures, which eased the likelihood of tightening monetary policy, and provided additional support for gold prices as one of the most important safe havens.
In contrast, the precious metal's gains are still facing caution, as investors prefer not to build large investment positions before the Federal Reserve's decision is issued, in light of continued uncertainty about the path of inflation and the US economy during the second half of the year.
The World Gold Council, in its weekly statement issued today, indicated that geopolitical tensions witnessed a new escalation during the past week with the intensification of the conflict in the vicinity of the Strait of Hormuz, before calming temporarily at the end of the week, coinciding with the United States announcing the imposition of new customs duties, and markets were also subjected to additional pressure as a result of growing concerns about the expected returns from huge investments in the artificial intelligence sector.
The Council added that economic data was mixed, as the United States showed continued strength in business activity, corporate results, and the labor market, while the Purchasing Managers' Index in the Eurozone improved with the European Central Bank holding interest rates steady, while private sector growth in India slowed and the inflation rate in Japan rose.
These developments were reflected in global financial markets, where most major stock indices declined, coinciding with a rise in US Treasury bond yields, a rise in the dollar, and a rise in oil prices.
The report explained that the real yields on ten-year US Treasury Inflation-Protected Securities approached exceeding their highest levels recorded during 2025, noting that the continuation of this trend may represent a pressure factor on gold prices during the coming period, if markets continue to reprice expectations for US monetary policy.
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