Gold prices fell in local markets during trading on Monday, with the ounce declining on the global stock exchange, affected by profit-taking and potential deals in Asia and other countries with the United States, which reduces the risk of tariffs.
Gold prices fell by EGP 25 during today's trading, compared to the end of the week. The price of 21-karat gold reached EGP 4,750 per gram, while the price of an ounce fell by $24 to $3,295.
The price of 24-karat gold reached EGP 5,429 per gram, the price of 18-karat gold reached EGP 4,071 per gram, and the price of 14-karat gold reached EGP 3,167 per gram, while the price of the gold pound reached EGP 38,000 per gram.
Gold prices in local markets fell by EGP 10 during last week's trading, with 21-karat gold opening at EGP 4,785, touching EGP 4,850, and closing at EGP 4,775. Meanwhile, the ounce fell by $8, opening at $3,327 and closing at $3,319.
Gold prices witnessed a significant decline amid profit-taking following televised remarks by US Treasury Secretary Scott Besant, indicating several trade deals with several Asian countries, which would reduce the risk of tariffs.
Besant said, "If there are 180 countries and 18 important trading partners, let's put China aside, because these are private negotiations. There are 17 important trading partners, and we have a working mechanism."
He added, "Some of these deals are going well, especially with Asian countries." Markets are under pressure due to conflicting signals from US-China trade talks. Despite Washington announcing a partial easing of tariffs and President Trump suggesting active negotiations, Beijing has denied any discussions are underway, keeping uncertainty high.
Economic data revealed that China's gold consumption fell 5.96% year-on-year to 290,492 tons in the first quarter, according to the China Gold Association.
Jewelry demand fell by nearly 27% amid persistently high prices, while demand for gold bars and coins rose by nearly 30%, providing limited compensation.
Despite the decline in demand, gold remains supported by ongoing geopolitical risks. Increasing instability, including reports of military movements in Eastern Europe, continues to boost demand for safe havens. Meanwhile, expectations of a Federal Reserve interest rate cut remain, with futures markets anticipating the first cut in June, with a 1% cut expected through 2025.
The Federal Open Market Committee is scheduled to issue its interest rate decision on May 7, and US data last week has already begun to show signs of a shift. Durable goods data, for example, revealed a significant shift in consumer confidence.
In a related development, markets are awaiting the release of the US JOLTS report for March, the first reading of GDP for the first quarter of 2025, the ISM manufacturing PMI, and April nonfarm payrolls figures.
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