Domestic Prices Decline Despite Global Ounce Surge; Price Gap Widens to 95 EGP

Gold prices fell in local and global markets during Tuesday's trading, driven by a drop in oil prices and receding global inflation concerns, according to a report by the Marsad al-Dhahab for Economic Studies. 

Dr. Walid Farouk, a researcher in gold and jewelry affairs and Director of the Marsad al-Dhahab, stated that domestic gold prices dropped by approximately 20 EGP during today's trading compared to yesterday's close, with 21-karat gold recording 7,150 EGP per gram. 

Meanwhile, the global ounce rose by about $34 to reach $4,775 at the time of writing, according to World Gold Council data. 

Additionally, 24-karat gold reached 8,171 EGP, 18-karat gold reached 6,129 EGP, and the gold pound stood at 57,200 EGP. 

The report noted that the gap between local and global prices widened to 95 EGP, as domestic prices remained lower than their global counterparts due to weak market demand. 

This follows Monday's session, where 21-karat gold opened at 7,160 EGP and closed at 7,170 EGP, while the global ounce closed at $4,741. 

Regarding silver prices, the report indicated stability in the local market, with 999-grade silver at 132 EGP, 925-grade at 122 EGP, and 800-grade at 106 EGP, while the silver pound reached 976 EGP and the global ounce rose from $74 to $77.50 according to World Silver Institute data.

Global gold prices recovered during today's trading after hitting one-week lows in the previous session, benefiting from oil prices dropping below $100 per barrel amid signs of potential resumed negotiations between the U.S. and Iran.

 This eased concerns over supply disruptions, particularly regarding tensions in the Strait of Hormuz. Typically, rising oil prices fuel inflation by increasing production and transport costs, while their decline reduces these pressures, impacting gold movements. 

Although gold is a safe haven during inflation, rising interest rates diminish its appeal as it yields no direct return. In a related context, the Dollar Index fell by 0.25% on Tuesday, marking its seventh consecutive daily loss to reach a six-week low amid improved investor risk appetite.

This performance coincides with ongoing diplomatic efforts sponsored by Pakistan and Turkey to push negotiations between Washington and Tehran toward a new round, likely in Geneva. 

Despite this, tensions persist as U.S. President Donald Trump announced a blockade on Iranian ports while Tehran hinted at a response, and Vice President J.D. Vance suggested possible progress regarding the Strait of Hormuz. 

Market estimates show the probability of a 25-basis point U.S. rate cut rose to 29% from 12% last week, while holdings in the SPDR Gold Trust fell by 5.23 metric tons on Monday to their lowest level since March 30.