Gold prices stabilized in local markets during Saturday's trading session, coinciding with the global market's weekly holiday, after the ounce suffered a weekly loss of 4.7%, following a fierce wave of selling that swept global markets at the close of the week's trading. This pushed the precious metal to erase all gains achieved since the start of 2026. The sharp losses came after stronger-than-expected US jobs data reinforced market bets on the continuation of the Federal Reserve's tight monetary policy, which lifted the dollar and US Treasury yields and put strong pressure on gold, according to a report issued by the "Marsad Al Dahab" for Economic Studies.
The Marsad Al Dahab stated that the price of 21-karat gold per gram stabilized at 6,450 Egyptian pounds compared to yesterday's closing, while the ounce recorded a weekly loss of 4.7%, amounting to approximately $212, closing the week at $4,328, according to World Gold Council data.
The report added that 24-karat gold per gram reached approximately 7,371 pounds, while 18-karat gold per gram reached approximately 5,529 pounds, and the gold pound recorded a level of 51,600 pounds.
It was noted that gold prices in local markets declined by approximately 180 pounds during Friday's trading, as 21-karat gold per gram opened at 6,630 pounds and closed at 6,450 pounds, while the ounce globally fell by approximately $154, opening at $4,482 and closing at $4,328.
The Marsad Al Dahab pointed out that gold prices in the local market are still trading above their fair value by approximately 165 pounds per gram, due to the continued cautious sentiment among traders following the sharp volatility that markets have witnessed since the beginning of the year.
The report added that the actual impact on the local market will largely depend on the trajectory of the dollar in the coming days, as any rise in its exchange rate could help limit the impact of the global decline on local gold prices, while a continued global decline in the precious metal alongside a stable or falling dollar could increase pressure on some traders — particularly those who made purchases at high price levels before the latest wave of decline.
The report clarified that holding strong gold inventory remains one of the most important elements of strength and stability for traders and manufacturers, but periods of sharp volatility pose challenges related to liquidity management and pricing risks, especially for quantities purchased at elevated price levels before the latest downturn.
It confirmed that the Egyptian market has become more capable of dealing with volatility compared to what occurred during the historic January 2026 crash, though continued global pressures may push some traders to adopt more conservative pricing policies until global market trends become clearer and price movements stabilize.
Gold Loses All Annual Gains
Global gold prices suffered sharp losses during Friday's trading, erasing all gains since the start of 2026, after strong US jobs data reinforced expectations of continued tight monetary policy.
The ounce had opened the year's trading at $4,318, before recording its highest level on January 29th at $5,626. However, it declined by more than 3.5% during Friday's session, touching $4,313, then closing at $4,328 — thereby relinquishing all its annual gains following a strong upward rally supported by geopolitical tensions and central bank purchases.
The fierce selling wave came following the release of the US non-farm payrolls report for May, which showed the addition of 172,000 new jobs — more than double market expectations of 85,000 — while the unemployment rate held steady at 4.3%, signaling continued strength in the US labor market despite elevated interest rate levels.
The US dollar index also rose above the 100-point level, while the yield on 10-year US Treasury bonds climbed to approximately 4.53%, creating a double pressure on gold, which yields no return for its holders.
Analysts at major financial institutions, including Goldman Sachs and UBS, believe that gold faces increasing pressure from rising real yields and dollar strength, warning that a break below the 200-day moving average — one of the most important long-term technical indicators — could open the door to further declines. The Gold Observatory noted that losing this technical level represents a negative signal for markets.
Comparison with the January 29 Crash.. What Has Changed?
The sharp decline in gold prices on Friday brings back memories of what happened on January 29, 2026, when precious metals markets experienced one of the most violent selling waves in their recent history.
On that day, gold recorded its worst single-day performance since 1983, after prices plunged approximately 12% in a single session, which was reflected in the local market with losses exceeding 600 pounds per gram, while gold locally lost approximately 510 pounds at once. Silver suffered even sharper losses exceeding 30% of its value, falling to approximately $80.4 per ounce after having previously recorded historic record levels.
That selling wave coincided with US President Donald Trump's announcement of Kevin Warsh as his choice for Federal Reserve Chairman — a decision that markets at the time viewed as an indicator of a more hawkish monetary policy approach in the coming period, prompting investors to violently reprice interest rate expectations and triggering a broad wave of profit-taking and exit from gold and silver.
Despite the similarities between what happened in January and what markets witnessed on Friday, there is a fundamental difference between the two events: in January, the main factor was the shock associated with the change in Federal Reserve leadership and future monetary tightening expectations, while the June decline came as a result of actual economic data showing US labor market strength and reinforcing the likelihood of keeping interest rates elevated for a longer period.
Bond Yields Outperform Safe Havens
The Marsad Al Dahab explained that the rise in US bond yields has restored them as the primary driver of markets, as it increases the cost of holding gold and pushes a portion of investment liquidity toward high-yielding government debt instruments.
The report added that markets focused primarily on the strength of US jobs data and the likelihood of continued tight monetary policy, largely ignoring geopolitical tensions in the Middle East.
A Decisive Week Awaits Gold
Investors are watching next week's US inflation data, home sales figures, producer price index, and jobless claims, alongside monetary policy meetings of the European Central Bank and the Bank of Canada — factors that could determine gold's direction in the coming period.
A number of analysts at specialized research centers, including Oxford Economics, warn that next week could be particularly difficult for gold, amid intense focus on US inflation data. They believe that any signs of broader pass-through effects from rising energy prices into the US economy will increase pressure on the precious metal by reinforcing expectations that high interest rates will remain in place for longer.
In the context of long-term forecasts, London-based precious metals research firm Metals Focus projected that average gold prices in 2026 will rise by approximately 43% year-on-year, despite its expectations for a decline in total global demand and an increase in supply from mines and recycling.
The firm indicated that investment demand for gold bars and coins will, for the first time, become the largest component of global demand — surpassing gold jewelry — supported by continued central bank purchases, concerns related to US debt, geopolitical tensions, and uncertainty over the future of the dollar. These are factors the firm believes will keep gold one of the most important safe havens in the period ahead.
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