Gold Losses Exceed 400 EGP in Local Markets

Since the beginning of April, gold prices in both local and global markets have witnessed a new decline during Wednesday's trading, amid the growing strength of the Dollar, rising oil prices, and continued anticipation regarding the developments of talks between the United States and Iran, alongside markets awaiting the U.S. Federal Reserve's decision on interest rates later today, according to the "Marsad Al Dahab" for Economic Studies. 

 In a statement, a researcher in gold and jewelry affairs and director of the "Marsad Al Dahab," said that the price of 21-karat gold fell by about 10 EGP to record 6,880 EGP, compared to yesterday’s close, while the global ounce dropped by about $27 to the level of $4,569 at the time of writing the report. 24-karat gold recorded about 7,863 EGP, and 18-karat reached 5,897 EGP, while the gold sovereign reached 55,040 EGP.

Gold prices in local markets had declined by about 95 EGP during Tuesday's trading, as 21-karat gold opened trading at 6,985 EGP before closing at 6,890 EGP, while the global ounce fell from $4,681 to $4,596, a loss of $85.

 He explained that the local market has lost about 410 EGP in the price of a gram of 21-karat gold since the beginning of April, a decline of 5.5%, after opening the month at 7,290 EGP, while the global ounce lost about $99, or 2.2%, during the same period, reflecting clear pressure on the precious metal despite ongoing geopolitical tensions. The report pointed out that the rise of the local Dollar exchange rate to above 53 EGP limited the severity of gold's decline in the Egyptian market, keeping the gap between local and global prices at high levels, reaching 85 EGP.

Regarding Egyptian consumer behavior, World Gold Council data revealed a shift in demand patterns during the first quarter of 2026, as total Egyptian gold purchases reached about 10.9 tons, of which 5.2 tons were gold jewelry—a 19% annual decline—against an increase in bullion and coin purchases to 5.7 tons, a 22% growth compared to the same period in 2025, reflecting a clear transition from consumption to savings and investment. 

Globally, gold continues to move under pressure from rising oil and inflation risks resulting from the continued closure of the Strait of Hormuz, which increases the likelihood of keeping American interest rates high for a longer period, reducing the attractiveness of gold as a non-yielding asset in the short term. However, long-term expectations remain supportive, driven by increasing central bank purchases and expanding trends to reduce global dependence on the Dollar.

Meanwhile, markets this week are following interest rate decisions from the U.S. Federal Reserve, the European Central Bank, and the Bank of England, amid broad expectations to keep U.S. rates unchanged, with continued inflationary pressures resulting from war and high energy prices. The Bank of Japan also kept interest rates at 0.75%, signaling continued global monetary caution. Markets are awaiting the U.S. Federal Reserve's decision on determining the fate of interest rates, alongside Jerome Powell's statements later today, searching for any signals regarding the interest rate path until the end of the year, especially with increasing bets on continued monetary tightening for a longer period.

Despite the current decline, Deutsche Bank believes that gold remains one of the biggest beneficiaries of the global "de-dollarization" wave, with increasing central bank reliance, especially in emerging markets, on gold as a strategic reserve asset in the face of sanctions and geopolitical risks. The bank noted that central bank purchases have exceeded 225 million ounces since the 2008 crisis, reinforcing long-term structural support for the yellow metal.

 In the same context, a Reuters poll of 31 analysts and traders showed that the average expectations for gold prices during 2026 rose to $4,916 per ounce, compared to previous estimates of $4,746.5, driven by continued central bank purchases, rising U.S. debt, a weak Dollar, and concerns regarding Federal Reserve independence. Analysts believe that gold, despite facing short-term pressure from high oil and interest rates, still retains strong long-term fundamentals, supported by shifts in the global monetary system and its growing role as a strategic hedging tool in a highly volatile economic and geopolitical environment.