Gold prices in the local market rose during Thursday’s trading, despite a slight decline in the ounce on the global exchange, pressured by the strength of the U.S. dollar and rising oil prices, alongside growing concerns about inflation and the continuation of a high interest rate policy, 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 gold prices in the local market increased by about EGP 30 during today’s trading compared to yesterday’s close, with 21-karat gold recording around EGP 7,010 per gram. Meanwhile, the global ounce declined by about $11 to reach $4,730 at the time of writing, according to World Gold Council data.
He added that 24-karat gold recorded around EGP 8,012 per gram, 18-karat about EGP 6,009, while the gold pound reached approximately EGP 56,080.
Gold prices witnessed fluctuations during Wednesday’s trading, with 21-karat gold opening at EGP 6,980 per gram and closing at the same level, while the ounce rose by about $20, opening at $4,721 and closing at $4,741.
Gold prices declined amid volatile trading on Thursday, as rising oil prices intensified concerns about inflation and the persistence of high interest rates. This comes as markets await greater clarity regarding the potential path of peace talks between the United States and Iran.
Gold and silver prices declined overnight during Asian market trading and at the start of today’s session, pressured by higher oil prices. Despite calls by U.S. President Donald Trump for an open-ended ceasefire with Iran, tensions in the Middle East have not eased.
Despite ongoing geopolitical risks, the overall outlook for gold remains tilted to the downside, pending a clear break below the $4,700 level, which could pave the way for a deeper decline in the coming period.
Gold is facing additional pressure from the strength of the U.S. dollar, supported by escalating tensions related to Iran and the Strait of Hormuz.
Meanwhile, persistent inflation concerns are reducing bets on interest rate cuts by the Federal Reserve, which in turn supports the dollar and weakens gold’s appeal as a non-yielding asset.
Rising energy costs are also keeping inflation concerns at the forefront of the Federal Reserve’s priorities, as higher interest rates tend to curb demand for gold.
On the ground, reports indicated that Iran targeted three vessels in response to a U.S. naval strike and an ongoing blockade near the Strait of Hormuz — a route that previously carried about 20% of global oil supplies — leading to a sharp surge in energy prices, with Brent crude exceeding $100 per barrel at the open.
Although gold is traditionally considered a hedge against inflation, higher interest rates increase the attractiveness of yield-bearing assets, thereby reducing demand for the precious metal.
According to a Reuters poll of economists, the Federal Reserve is likely to delay interest rate cuts for no less than six months amid rising inflationary pressures driven by energy shocks.
Market expectations for a 25 basis point rate cut in December have also declined to 23%, down from 28% a week ago, after earlier projections had pointed to two rate cuts this year.
In terms of supportive factors for price movements, a recent study by the Gold Observatory for Economic Studies showed that India’s Akshaya Tritiya season remains one of the influential drivers of global gold demand, despite a decline in its traditional momentum. The season, which contributes between 1% and 2% of annual demand in a single day, now extends its impact to Gulf and Egyptian markets through pricing links to global exchanges.
The study also revealed a structural shift in consumer behavior, with declining demand for jewelry in favor of bars, coins, and investment funds, driven by record-high prices. This reinforces gold’s role as a savings and investment tool rather than a consumption commodity, ultimately influencing market trends during seasonal periods.
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