Gold Prices Drop By EGP 160 Following US-China Trade Agreement

Gold prices fell in local markets during trading on Monday, along with a decline in the ounce on the global stock exchange, following the trade agreement between the United States and China to temporarily lift customs duties.

Gold prices fell in local markets by approximately EGP 160 compared to the close of trading last Saturday evening, with the price of a gram of 21-karat gold reaching EGP 4,555 per gram, while an ounce fell by $107 to $3,218 per gram.

The price of a gram of 24-karat gold reached EGP 5,206 per gram, and the price of a gram of 18-karat gold reached EGP 3,904 per gram. The price of a gram of 14-karat gold reached approximately EGP 3,037 per gram, while the price of a gold pound reached approximately EGP 36,440 per gram. Gold prices in local markets rose by EGP 80 during last week's trading, with 21-karat gold opening at EGP 4,635, touching EGP 4,800, and closing at EGP 4,715. Meanwhile, the ounce rose by $84, opening at $3,241, touching $3,400, and closing at $3,325.

Gold prices declined along with the ounce on the global stock exchange, following the agreement between the United States and China to reduce tariffs for 90 days.

Gold has lost more than 8% from its all-time high of $3,500 reached on April 22. The precious metal remains up 23% since the beginning of the year, supported by safe-haven demand, reflecting market volatility caused by US tariffs and geopolitical conflicts. The US "reciprocal" tariffs on China were reduced from 125% to 10%, while China also agreed to reduce tariffs on US imports from 125% to 10%.

US officials stated that some other measures remain in place, and that the tariff reductions will last for 90 days to allow more time for discussions.

Earlier in the session, US Treasury Secretary Scott Besant—who led the US trade delegation during a weekend of talks in Switzerland with his Chinese counterparts—said they had made "substantial progress" in the discussions.

The US-China trade agreement sent investors fleeing safe-haven assets like gold and silver.

The US-China agreement to temporarily remove tariffs shocked financial markets, sending US bond yields soaring, with the 10-year Treasury yield hitting 4.43%, a level not seen since early April.

In the commodities sector, oil rose more than 2% to $62.50, as demand is expected to rise again with the easing of trade tensions. Stocks are also witnessing a significant rise, with Chinese stocks rising more than 1%. European stock indices saw smaller gains, while US futures outperformed, recording gains ranging between 2.50% and 3%. Meanwhile, demand for gold, a safe haven, declined as geopolitical tensions eased following the announcement of a ceasefire between India and Pakistan. Ukrainian President Volodymyr Zelenskyy is preparing to meet Russian President Vladimir Putin in Turkey next Thursday for talks ahead of a potential ceasefire. In a related development, markets are awaiting US CPI data on Tuesday, US Producer Price Index data, and US retail sales data this week. US weekly unemployment claims, Empire State Manufacturing Survey, Philadelphia Manufacturing Survey, and Federal Reserve Chairman Jerome Powell's remarks in Washington, D.C., on Thursday, and the University of Michigan's preliminary survey of consumer confidence on Friday.