Gold prices rose in both local and global markets on Wednesday, supported by a weaker U.S. Dollar and lower Treasury yields, as traders turned their attention to the Federal Reserve’s July meeting minutes and Chairman Jerome Powell’s upcoming speech at the Jackson Hole Symposium.
The price of 21-karat gold rose by about 30 Egyptian pounds to reach EGP 4,550 per gram, while the ounce gained $27 to reach $3,342.
Meanwhile, 24-karat gold stood at around EGP 5,200 per gram, 18-karat at approximately EGP 3,900, and 14-karat at EGP 3,034, with the gold pound coin registering EGP 36,400.
This increase followed Tuesday’s decline, when local prices fell by about 10 pounds, with 21-karat gold slipping from EGP 4,530 to EGP 4,520 per gram, while the ounce dropped from $3,333 to $3,315.
Fed and Jackson Hole in Focus
Markets are eagerly awaiting the Fed’s July meeting minutes, which notably included rare dissent from two policymakers who called for a 25-basis-point rate cut. Powell’s upcoming speech at Jackson Hole (August 21–23) is seen as particularly significant, as it could shed light on the Fed’s next steps regarding inflation and the labor market, directly influencing September’s policy decisions.
According to the CME FedWatch tool, markets are pricing in an 83–85% probability of a 25-basis-point cut next month. However, some analysts warn Powell may adopt a more hawkish tone, especially after last week’s strong Producer Price Index (PPI) data.
Market Moves and Gold
Gold staged a strong rebound on Wednesday after touching $3,310, trading again near $3,340 in early U.S. dealings. The recovery was driven by the U.S. Dollar Index pulling back from a one-week high, along with a drop in real Treasury yields.
The dollar index initially climbed to 98.44 but later slipped to 98.12 after President Trump called for Fed Governor Lisa Cook’s resignation over a mortgage-related controversy, further increasing political pressure on the Fed.
Geopolitical Background
Market sentiment improved following a White House summit that brought together President Trump, Ukrainian President Volodymyr Zelenskyy, and top European leaders, reviving hopes for a diplomatic breakthrough in the Russia–Ukraine conflict.
However, Moscow, through Foreign Minister Sergey Lavrov, insisted that any potential summit with Ukraine must be gradually prepared at the technical and diplomatic levels.
Trump also suggested that Washington might provide security guarantees to Ukraine, particularly through air support, but ruled out deploying ground troops, stressing that a peaceful resolution remains the best path forward.
Political Pressure on the Fed
On the monetary policy front, Trump renewed his attacks on Fed Chair Jerome Powell, accusing him of hurting the housing sector by keeping interest rates too high and calling for aggressive rate cuts. These remarks come just days ahead of Powell’s much-anticipated speech at Jackson Hole, where investors will be watching closely for clearer signals about the Fed’s next policy steps amid rising political pressure.
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