Gold Holds Steady as Markets Await Trump–Zelenskiy Meeting and Rate-Cut Expectations

Gold prices remained stable in the Egyptian market during Monday’s trading, in line with steady global spot prices, as investors awaited the outcome of the highly anticipated meeting between U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskiy, and NATO leaders at the White House.

In the local market, gold closed at EGP 4,540 per gram of 21-karat, unchanged from last week’s close after trimming gains by around EGP 10. The price of 24-karat gold stood at EGP 5,189 per gram, 18-karat at EGP 3,891, and 14-karat at EGP 3,027, while a gold pound coin was priced at EGP 36,320.

Globally, gold ended last week down 1.8% at $3,336 per ounce, pressured by accelerating U.S. wholesale inflation, which forced markets to reassess expectations of Federal Reserve rate cuts.

This week, traders are closely watching several key events, most notably the Trump–Zelenskiy meeting, which could shape the outlines of a potential peace deal with Russia in light of President Vladimir Putin’s recent proposals. Also in focus is the Jackson Hole symposium, where Fed Chair Jerome Powell is expected to deliver a key speech on the outlook for monetary policy.

While Fed officials remain divided—some advocating for multiple rate cuts this year, while others urge caution due to inflation uncertainty—major institutions have turned increasingly bullish on gold. Citigroup expects gold to reach $3,500 in the next three months, supported by geopolitical tensions, global economic concerns, and diversification away from dollar assets. Analysts at Goldman Sachs forecast that if the dollar continues to weaken, gold could hit $3,700 an ounce by the end of 2025.

Recent Fed commentary has highlighted this policy split. Governor Michelle Bowman said weak labor market data reinforced her concerns and strengthened her view that three rate cuts this year are appropriate. By contrast, Jeffrey Schmid, President of the Kansas City Fed, argued that tariffs’ limited impact on inflation justified keeping policy unchanged rather than cutting rates.

Raphael Bostic, President of the Atlanta Fed, noted after a tour of the U.S. Southeast that tariff pressures are real, higher borrowing costs are squeezing corporate profits, and markets still anticipate two rate cuts this year.

Meanwhile, gold’s popularity as a jewelry metal has fallen sharply due to record-high prices, particularly in key markets like India and China, while its role as a capital-preservation and inflation-hedging asset continues to expand globally.