Marsad Al Dahab revealed that gold prices in the Egyptian market declined by approximately EGP 485 during the first two weeks of June, while the global gold ounce lost around $321, as persistent pressure from higher U.S. inflation and fading expectations of interest rate cuts pushed the precious metal to record its second consecutive weekly loss.
Gold prices in the local market fell by approximately EGP 195 during the past week, representing a 3% decline. The price of 21-karat gold opened trading at EGP 6,475 per gram, touched EGP 6,035—the lowest level since January 11, 2026—before closing at EGP 6,280 per gram.
Meanwhile, the global gold ounce declined by about $109 during the week, or 2.5%, opening at $4,328, falling to a low of $4,023, and closing at $4,219 per ounce.
The price of 24-karat gold reached EGP 7,177 per gram, while 18-karat gold stood at EGP 5,383 per gram. The gold pound coin was priced at EGP 50,240.
Since the beginning of June, gold prices have lost approximately EGP 485, representing a 7% decline. The 21-karat gold price opened the month at EGP 6,765 per gram, while its gains since the start of the year narrowed to just EGP 450, or 7.7%.
In contrast, the global gold ounce lost about $321 since the beginning of June, equivalent to 10% of its value, after opening the month at $4,540 per ounce. Year-to-date losses have reached approximately $99, or 2.3%.
Global markets experienced significant volatility during the past week. Gold prices initially rose on escalating geopolitical concerns in the Middle East and tensions surrounding the Strait of Hormuz. However, this support proved short-lived after U.S. inflation data came in above market expectations.
Data showed that the U.S. Consumer Price Index (CPI) for May rose to an annual rate of 4.2%, while the Producer Price Index (PPI) increased by 1.1% month-on-month and 6.5% year-on-year. These figures reinforced expectations that U.S. interest rates will remain elevated for a longer period.
Rising inflation prompted markets to reprice expectations for U.S. monetary policy, resulting in a stronger U.S. dollar and higher Treasury yields, which increased pressure on gold as a non-yielding asset.
Marsad Al Dahab believes that markets no longer view geopolitical tensions as the primary driver of gold prices as they once did. Instead, the main focus has shifted toward inflation and interest rates. The greater the expectation that interest rates will remain elevated, the stronger the pressure on gold, even amid ongoing geopolitical risks.
The observatory added that gold has been under pressure since the outbreak of the war at the end of February, as concerns grow that rising energy prices could fuel a new wave of inflation and force central banks to maintain restrictive monetary policies for longer.
Oil prices also fell by more than 3% following reports suggesting a possible understanding between the United States and Iran to end the Gulf conflict. However, Iranian sources later denied those reports, adding further volatility to global markets.
In a related development, UBS lowered its gold price outlook, warning that continued delays in U.S. interest rate cuts could push gold to trade within a range of $3,850 to $4,000 per ounce in the near term.
Marsad Al Dahab also highlighted a clear divergence in Egyptian consumer behavior toward gold amid the sharp price declines witnessed in local and global markets over recent weeks.
The latest downturn prompted some individuals to consider selling their gold holdings out of concern that prices could continue falling. At the same time, a large segment of investors and savers increased their purchases to take advantage of lower prices.
Local markets witnessed notable activity in purchases of gold bars and gold coins in recent days, benefiting from prices trading well below previous record highs. This has led to shortages in certain bullion weights at some companies and retailers, alongside reduced availability of locally produced bullion due to stronger investment demand.
According to Marsad Al Dahab, this divergence reflects differing investment philosophies toward the precious metal. While some participants approach gold from a short-term trading perspective and react to daily price fluctuations, others view it as a store of value and an effective hedge against inflation and currency volatility.
The observatory emphasized that gold naturally moves through recurring cycles of rises and corrections, and that current declines are not unprecedented. Over the past several years, the metal has experienced strong correction phases before reaching new record highs.
Historical data show that the price of 21-karat gold rose from around EGP 800 per gram in 2021 to approximately EGP 1,600 in 2022, nearly EGP 3,200 in 2023, EGP 3,700 in 2024, and EGP 5,800 in 2025, before surpassing EGP 6,000 in 2026 despite periods of volatility and corrections along the way.
The observatory noted that one of the most common mistakes among market participants is buying during sharp rallies out of fear of missing out and then selling during downturns out of fear of further losses. Such behavior often results in poorly timed investment decisions.
Long-term investors, by contrast, view market declines differently. They see them as opportunities for gradual accumulation and averaging purchase costs over time rather than making hasty decisions driven by short-term concerns.
Marsad Al Dahab stressed that investing in gold requires a longer-term perspective. The precious metal is not generally suitable for generating quick profits within a few months but serves as an effective tool for preserving purchasing power and diversifying assets over the medium and long term.
Markets are now awaiting a series of important economic data releases and policy decisions next week, led by the U.S. Federal Reserve’s interest rate decision, as well as monetary policy announcements from the Bank of Japan, the Swiss National Bank, and the Bank of England. Investors will also monitor U.S. retail sales, housing starts, building permits, and weekly jobless claims data.
Marsad Al Dahab believes that the outcome of these economic releases and policy decisions will be the key factor determining gold’s direction during the second half of June, and whether the precious metal will continue trading near current support levels or regain part of its recent losses.
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