Gold Declines Amid Pressure to Ease Trade Restrictions

Gold prices declined in local markets during trading on Wednesday, with the ounce declining on the global stock exchange due to the strength of the dollar, pressure to ease trade restrictions, and anticipation of US economic reports.

Gold prices declined by EGP 25 during trading today, compared to yesterday's closing price. The price of a gram of 21-karat gold reached EGP 4,740, while an ounce fell by $30 to $3,290.

 A gram of 24-karat gold reached EGP 5,417, a gram of 18-karat gold reached EGP 4,063, a gram of 14-karat gold reached EGP 3,160, and the gold pound reached EGP 37,920. Meanwhile, gold prices in local markets fell by 20 Egyptian pounds during trading on Tuesday, with 21-karat gold opening at 4,785 Egyptian pounds and closing at 4,765 Egyptian pounds. An ounce fell by $28, opening at $3,348 and closing at $3,320.

Gold prices fell in global markets due to the rising dollar, amid pressure from easing US trade restrictions and ahead of the release of US GDP and inflation data.

Markets are awaiting the release of US GDP and personal consumption expenditures inflation data, which could alter Federal Reserve policy expectations and gold price trends in the coming period.

President Trump signed executive orders on Tuesday aimed at easing the burden of auto tariffs, while administration officials confirmed reaching a trade agreement with at least one foreign partner.

Treasury Secretary Scott Besant also indicated that additional agreements are in the works with countries such as India and South Korea. The improved outlook helped the US dollar regain its balance, putting pressure on gold by increasing its price against other currencies. While China has suspended tariffs on several US goods, gold prices have not collapsed. Despite the easing of trade tensions, gold prices have not collapsed. The limited decline in gold prices indicates that markets remain cautious, and investors continue to use gold as a hedge against political uncertainty and economic weakness.

Meanwhile, markets are awaiting today's US GDP report, which is expected to show zero growth, and the March PCE reading, expected at 2.2%.

These data are crucial in shaping Federal Reserve policy expectations. Weak readings could support gold by pushing yields and the dollar lower, while strong numbers could raise bets on interest rate hikes, making gold less attractive to investors.

The Federal Open Market Committee is scheduled to release its interest rate decision on May 7, while markets are awaiting Friday's nonfarm payrolls data, allowing the Fed to assess its policy decision before its next meeting.