Global Gold Drops 2% Weekly; Markets Await Fed and US Jobs Report

Gold prices stabilized in local markets during Saturday's trading, coinciding with the global stock market's weekly break, while the global ounce recorded weekly losses for the second consecutive week by 2%, influenced by the continuation of restrictive US monetary policy, rising oil prices, and escalating inflationary fears, according to a report by the "Marsad Al Dahab" for economic studies. 

The director of the "Marsad Al Dahab" stated that gold prices in the local market witnessed a state of stability during today's trading compared to the close of yesterday's trading, with the price of a gram of 21-karat gold recording 6,960 EGP, while 24-karat recorded 7,954 EGP, 18-karat reached 5,966 EGP, and the gold coin recorded 55,680 EGP, while the global ounce reached $4,614. Local gold prices had risen by about 5 EGP during Friday's trading, as the 21-karat gold gram opened trading at 6,955 EGP before closing at 6,960 EGP, while the global ounce fell from $4,617 to $4,614, a loss of $3. Over the course of the week, the global ounce lost about $96, declining by 2% in its second consecutive weekly loss, amid growing market bets that US interest rates will remain at high levels for a longer period, which strengthened the dollar and temporarily limited the attractiveness of gold. 

According to "Marsad Al Dahab" data, gold lost about 335 EGP per gram locally during April, a decline of 4.6%, after opening the month at 7,290 EGP for 21-karat, before dropping to 6,830 EGP as the lowest monthly level on April 29, and then closing at 6,955 EGP. Globally, the ounce declined by 1% during the month, losing $51 after a wave of sharp fluctuations between $4,790 and $4,514.

Despite this monthly decline, gold still maintains a strong annual performance, as local prices have risen by about 1,125 EGP per gram since the beginning of 2026 until the end of April, after 21-karat gold started the year at 5,830 EGP, then recorded its highest historical level in the local market at 7,600 EGP per gram on March 2, before declining relatively to 6,955 EGP by the end of April. Globally, the ounce has risen by about $299 since the beginning of the year, after opening at $4,318 and recording an unprecedented historical level at $5,626 on January 29, before stabilizing near $4,617 by the end of April. 

The greatest pressure on gold this week came from the Federal Reserve's adherence to a restrictive monetary policy amid fears that rising energy and oil prices would lead to a new wave of inflation, which pushed markets to reduce expectations for interest rate cuts during the current year. 

The strength of US manufacturing data and continued price pressures also contributed to these trends. At the same time, the receding of some geopolitical fears associated with US-Iranian tensions contributed to reducing the demand for gold as a safe haven in the short term, despite the continued state of global political uncertainty. 

Markets are awaiting a group of influential US economic data during the coming week, including factory orders, the Purchasing Managers' Index for the services sector, speeches by Federal Reserve officials, as well as the non-farm payrolls report, which may redraw interest rate expectations and gold movements. In the long term, market fundamentals still support gold, as World Gold Council data confirms the continuation of strong investment demand after total global demand for gold during the first quarter of 2026 recorded a record level of 1,231 tons, with a value of $193 billion, driven by a 42% increase in bullion and coin investments, while central banks raised their purchases to 244 tons, an increase of 3%, which strengthens the positive outlook for gold despite short-term fluctuations.