Gold and silver prices declined in local and global markets on Thursday, driven by a stronger dollar after U.S. President Donald Trump stated that Washington would continue its military campaign in Iran over the coming weeks. This announcement led to higher oil prices and diminished hopes for interest rate cuts, according to the “Marsad El Dahab” economic studies report.
In the local market, gold prices fell by about 45 Egyptian pounds compared to yesterday’s close, with a gram of 21-carat gold reaching 7,200 pounds. The global ounce of gold dropped by around 135 dollars to reach 4,755 dollars.
Meanwhile, a gram of 24-carat gold reached 8,229 pounds, 18-carat gold 6,171 pounds, and the gold pound traded at 57,600 pounds.
Silver prices also declined locally, with a gram of 999-grade silver at 139 pounds, 925-grade at 120.25 pounds, 800-grade at 104 pounds, and the silver pound at 962 pounds. The global ounce of silver fell by 4 dollars to reach 71 dollars.
The decline in local gold and silver prices followed a drop in the global ounce, amid relative stability in the dollar exchange rate.
The global gold market reacted to Trump’s speech on the war with Iran. The U.S. has strengthened its presence in the Middle East, and Trump indicated that the coming weeks could see major strikes on Iran’s energy infrastructure. This drove up oil and the U.S. dollar, as well as U.S. Treasury yields, putting pressure on gold prices.
The dollar traded at approximately 54.60 pounds in the local market, while local gold pricing is based on a rate of around 55.2 pounds per dollar. This widened the gap between local and global gold prices to about 240 pounds, up from roughly 75 pounds yesterday.
Changes in the exchange rate have been a key factor shaping the Egyptian gold market over the past five years, encouraging citizens to invest in gold as a hedge against local currency depreciation, boosting demand for bullion over jewelry.
Markets are also awaiting the Central Bank’s monetary policy decision later today, with expectations that interest rates will remain unchanged.
Globally, U.S. Treasury yields and the dollar index have risen, while Brent crude jumped over 6% following threats to target Iran’s energy infrastructure, raising concerns about supply and inflationary pressures.
According to a report by the World Gold Council, central bank gold purchases rebounded in February 2026, with net acquisitions totaling 19 tons, led by Poland. China, the Czech Republic, and Uzbekistan continued their regular buying, reflecting the ongoing strategy of central banks to strengthen gold reserves and diversify their holdings. Turkey and Russia, however, reduced their gold reserves.
In economic news, U.S. retail sales rose by 0.6% in February, exceeding expectations, while the manufacturing purchasing managers’ index rose to 52.7 points in March, indicating continued growth in the industrial sector and higher inflationary pressures.
These developments suggest that the U.S. central bank may maintain elevated interest rates for a longer period, increasing the opportunity cost of holding gold and limiting short-term price gains despite ongoing geopolitical tensions.
Gold remains highly sensitive to geopolitical events, with high volatility expected as markets monitor developments in the Middle East and U.S. employment data, which could influence market trends in the near term.
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