Gold Declines as US-China Trade Talks Progress

Gold prices fell in local markets during trading on Wednesday, due to a decline in the ounce on the global stock exchange, as trade talks between the United States and China progressed, amid market anticipation of the US Federal Reserve's decision on interest rates later today.

Gold prices fell in local markets by about EGP 35 compared to the close of trading yesterday, with the price of 21-karat gold reaching EGP 4,850 per gram, while the price of an ounce fell by about $39, reaching $3,390.

The price of 24-karat gold reached EGP 5,543 per gram, the price of 18-karat gold reached EGP 4,157 per gram, the price of 14-karat gold reached EGP 3,234 per gram, and the price of the gold pound reached EGP 38,800 per gram. Gold prices fell by EGP 145 in the markets during trading yesterday, Tuesday, with the 21-karat gold gram opening at EGP 4,740 and closing at EGP 4,885. Meanwhile, the ounce rose by $92, opening at $3,337 and closing at $3,429.

The decline in gold prices in the local markets was influenced by the decline in the ounce on the global stock market, ahead of the Federal Reserve's interest rate decision and following statements from both China and the United States confirming that trade talks would begin at the end of this week.

US Treasury Secretary Scott Besant and US Trade Representative Jameson Greer are scheduled to meet later this week in Switzerland for trade talks with a Chinese delegation, led by Vice Premier He Lifeng, in an effort to defuse the standoff between the two countries over tariffs that have threatened to weaken their economies. According to Besant on Fox News, there will be no trade talks at all, but rather talks to de-escalate the situation. Gold ended a two-day winning streak as signs of progress in US-China trade talks curbed safe-haven demand even as hostilities between India and Pakistan escalated overnight, according to Bloomberg.

Meanwhile, markets are awaiting the US Federal Reserve's decision on interest rates later today, amid expectations that the Fed will keep rates unchanged despite political pressure from US President Donald Trump to cut rates.

Attention will also be focused on Jerome Powell's remarks during the press conference following the Monetary Policy Committee meeting for strong signals on the timing and pace of potential interest rate cuts this year, which will determine the fate of gold prices.