Gold Prices Decline Due To Profit-Taking

Gold prices declined in local markets during trading on Monday, with the ounce on the global stock exchange declining after hitting a record high at the start of trading, due to profit-taking.

Gold prices declined in local markets by approximately EGP 35 during trading today, compared to the close of trading last Saturday evening. The price of a gram of 21-karat gold reached EGP 4,630, while the ounce fell by approximately $29, reaching $3,209, after hitting its all-time high at the start of trading today at $3,246.

A gram of 24-karat gold reached EGP 5,291, a gram of 18-karat gold reached EGP 3,969, while a gram of 14-karat gold reached EGP 3,087, and the gold pound reached EGP 37,040. Gold prices in local markets rose by 7.3%, or EGP 315, during last week's trading. A gram of 21-karat gold opened at EGP 4,350, touched EGP 4,710, and closed at EGP 4,665. Meanwhile, an ounce rose by 6.6%, or $200, opening at $3,038, touching $3,248, and closing at $3,238.

Gold prices declined on the global stock exchange after hitting a record high of $3,246 per ounce at the start of trading, as investors sought a safe haven amid inflation fears and market instability.

US President Donald Trump's decision to grant a short-term exemption from customs duties for 92 days improved market sentiment and pressured gold. China raised its tariffs on US imports to 125% on Friday, in retaliation for US President Donald Trump's decision to raise tariffs on Chinese goods to 145%.

Market fears that the trade war between the world's two largest economies could weaken global economic growth are exacerbating, sending gold prices to a record high.

Strong market volatility and credit pressures have pushed investors toward safe-haven assets following sharp swings in stocks and bonds amid risk aversion and growing doubts about economic stability. With trade tensions lingering, fragile confidence continues to support demand for gold.

Goldman Sachs raised its gold price forecast to $3,700, citing strong central bank buying and growing concerns about recession risks. In extreme scenarios related to the possibility of Federal Reserve policy volatility or changes in the US Federal Reserve's strategy, Goldman expects a potential rise to $4,500. Gold has a strong long-term upside potential, supported by ongoing geopolitical uncertainty and strong demand from banks, especially with the weaker dollar.

Recent reports indicate that inflows into Chinese gold exchange-traded funds (ETFs) reached a new daily record late last week, as investors continue to flock to the yellow metal amid escalating trade tensions.

According to Bloomberg data, inflows into China's four major gold ETFs reached a record high of nearly 3 billion yuan ($410 million) on Thursday.

In a related development, markets are awaiting comments from Federal Open Market Committee members this week, including Federal Reserve Chairman Jerome Powell on Wednesday, for clues on the path to future interest rate cuts.