Gold Declines Locally and Globally as Dollar Strengthens and Markets Await Powell’s Jackson Hole Speech

Gold prices fell in both local and global markets on Thursday, pressured by the stronger U.S. dollar and as investors awaited signals from the Federal Reserve at its annual Jackson Hole symposium, which kicked off in Wyoming and runs through August 23.

In the local market, 21-carat gold dropped by EGP 10 to 4,545 per gram, while international spot gold slipped by about $15 to $3,333 per ounce. Meanwhile, 24-carat gold stood at EGP 5,194 per gram, 18-carat at EGP 3,896, and 14-carat at EGP 3,030, with the gold pound (sovereign) priced at EGP 36,360.

This decline followed Wednesday’s rally, when domestic gold rose by about EGP 35 and international prices climbed from $3,315 to $3,348 per ounce.

Globally, gold fell 0.6% at the start of Thursday’s session, pressured by selling after the release of minutes from the Fed’s July FOMC meeting. The minutes showed that most policymakers were hesitant to adjust monetary policy before assessing the impact of tariffs on inflation.

The Fed kept interest rates unchanged at 4.25%–4.50%, though two members pushed for a 25-basis-point cut, arguing that core inflation—excluding tariff effects—was close to target while job growth was slowing.

Recent data highlighted a cooling labor market, with unemployment rising to 4.2% in July alongside weaker wage growth and softer household consumption and investment. Nonetheless, inflation remains above target, leaving the Fed in a difficult balancing act between price stability and supporting growth.

According to the CME FedWatch tool, markets are now pricing in an over 80% chance of a 25-basis-point rate cut in September, which could boost gold’s appeal. However, the metal remains under pressure from the Fed’s tight monetary stance, as a non-yielding asset.

On the geopolitical front, reports suggested the White House is considering Budapest as a venue for a possible trilateral summit between U.S. President Donald Trump, Russian President Vladimir Putin, and Ukrainian President Volodymyr Zelensky to discuss a potential ceasefire between Moscow and Kyiv.

As markets prepare for Fed Chair Jerome Powell’s speech on Friday in Jackson Hole, gold remains caught in a complex equation of dollar strength and bond yields on one side, and expectations of rate cuts and geopolitical risks on the other.