Gold Falls Below $3,300 Amid Rising Dollar and Yields, as Markets Eye Fed Minutes and Trump's Tariff Threats

Gold prices continued their decline for the second consecutive day on Wednesday in both local and global markets, pressured by a stronger US dollar and rising Treasury yields, as investors await the release of the US Federal Reserve's meeting minutes.

Gold lost approximately EGP 10 in the local market during today's session compared to Monday’s closing, with the price of 21-karat gold falling to EGP 4,610 per gram, while the ounce dropped by about $13 to reach $3,290.

The price of 24-karat gold stood at EGP 5,269 per gram, 18-karat gold at EGP 3,951, and 14-karat gold at EGP 3,074. Meanwhile, the price of a gold pound (8 grams of 21k) reached EGP 36,880.

On Tuesday, gold prices had already declined by EGP 25, with 21-karat gold opening at EGP 4,645 and closing at EGP 4,620. Globally, the ounce dropped by $34—from $3,337 at the session open to $3,303 at the close.

International gold prices extended losses during Wednesday’s session, falling below the $3,300 mark for the first time in over ten days. The ounce hit $3,290, weighed down by the US dollar rising to a two-week high and increasing Treasury yields, amid growing market concerns over inflation and the potential impact of new US tariff proposals.

Investors are now focused on the upcoming minutes from the Federal Open Market Committee (FOMC) meeting held in June, which could reveal divisions within the Fed over the timing of a potential interest rate cut. In its latest meeting, the Fed kept rates unchanged within the 4.25%–4.50% range, citing labor market strength and persistent inflation pressures.

The latest US Nonfarm Payrolls report reinforced this view, showing continued labor market resilience, which has in turn dampened expectations for an imminent rate cut. Consequently, Treasury yields rose across the curve, increasing the appeal of yield-bearing assets at the expense of non-yielding gold.

On the other hand, the US dollar received additional support following news of progress in trade talks between the United States and the European Union, boosting market confidence in the greenback and temporarily reducing safe-haven demand for gold.

Meanwhile, the administration of former President Donald Trump is preparing to implement new tariffs starting August 1, including a 50% duty on copper imports and 200% on pharmaceutical products. According to the US Department of Commerce, 14 official notices have already been sent to countries including Japan and South Korea, with 15–20 more letters expected to be sent in the coming days.

Trump has also threatened to impose an additional 10% tariff on BRICS nations, a bloc of emerging economies seeking to expand their influence in global economic and political affairs.

On the Truth Social platform, Trump reiterated that the new tariffs would begin as scheduled: "Everyone will pay... That’s the cost of doing business in the United States," he wrote, emphasizing that there will be no delay to the implementation date.

Despite downward pressure from higher yields and a stronger dollar, gold continues to find some support as a safe-haven asset, especially in light of fragile risk sentiment and escalating geopolitical and trade tensions.