Gold Declines Locally Despite Weekly Global Gains Supported by Dollar Weakness and Trump’s Escalation

Gold prices fell in local markets during trading on Saturday, coinciding with the global market’s weekly holiday, even as the ounce gained about 0.5% over the week. This weekly rise was supported by a weaker US dollar and political statements from President Donald Trump that heightened fears of a trade war.

Locally, gold prices dropped by around 5 Egyptian pounds compared to Friday’s close, with the 21-carat gold gram priced at 4,655 pounds. Meanwhile, the ounce rose by approximately $18 on the global exchange, closing the week at $3,355.

Other local prices included the 24-carat gold gram at 5,320 pounds, 18-carat at 3,990 pounds, 14-carat at 3,104 pounds, and the gold pound at 37,240 pounds.

On Friday, gold prices had increased by about 40 pounds, with the 21-carat gram opening at 4,620 pounds and closing at 4,660 pounds. Globally, the ounce rose roughly $30, opening at $3,325 and closing at $3,355.

The weekly rise in gold prices is attributed to controversial trade policies imposed by President Trump on Canada, threatening to extend tariffs to other countries. On Thursday, Trump announced a 35% tariff on Canadian goods and increased general tariffs on most trade partners from 10% to 15-20%. The US administration also imposed a 50% tariff on copper imports, intensifying volatility in industrial metals markets, especially copper and silver, thereby boosting gold’s appeal as a safe-haven asset amid risks.

Austin Goolsbee, President of the Federal Reserve Bank of Chicago, stated he does not see the rationale for cutting interest rates to reduce government debt, emphasizing the Fed’s mission to promote employment and price stability.

Gold prices have risen more than 27% since early 2025 and jumped over 40% in the past 12 months. Since the October 2022 low of $1,630, gold’s price doubled to $3,355 in less than 28 months, representing nearly a 100% return in under two and a half years—performance unmatched even by the most consistently growing stocks.

Looking ahead, markets are awaiting key US economic data next week, including the June Consumer Price Index, retail sales, and initial jobless claims, along with a series of Federal Reserve speakers’ comments before the scheduled July 19 work stoppage period.