Gold prices Fall By 100 Egyptian Pounds In local Markets

Gold prices fell in local markets during trading on Thursday, with the ounce declining on the global stock exchange due to the strength of the dollar and increased selling, amid easing trade tensions between the United States and China.

Gold prices fell by 100 Egyptian pounds in today's trading, compared to yesterday's closing price. The price of 21-karat gold reached 4,630 Egyptian pounds per gram, while the ounce fell by $74 to $3,226. The price of a gram of 24-karat gold reached EGP 5,292, while a gram of 18-karat gold reached EGP 3,969. A gram of 14-karat gold reached EGP 3,087, and the gold pound reached EGP 37,040.

Gold prices in local markets fell EGP 35 during trading on Wednesday, with the price of a gram of 21-karat gold opening at EGP 4,765 and closing at EGP 4,730. Meanwhile, the price of an ounce fell $20, opening at $3,320 and closing at $3,300.

Gold prices in local markets witnessed sharp declines, with the price of an ounce on the global stock exchange falling to its lowest level in two weeks, amid a stable exchange rate and slowing demand.

The easing of trade tensions between the United States and China strengthened the dollar, exposing gold to heavy selling in international markets. US President Donald Trump stated earlier Thursday that there is a "very high probability of reaching a deal with China," adding that we have "potential" trade agreements with India, South Korea, and Japan.

Wednesday's US jobs report showed that private sector employment increased by 62,000 jobs in April. This represents a significant decrease from the 147,000 increase (revised from 155,000) recorded in March and was significantly below market expectations of 108,000 jobs.

Additionally, the Bureau of Economic Analysis' preliminary estimate indicates that the US economy contracted at an annual rate of 0.3% during the first quarter of 2025, after growing at a robust pace of 2.4% in the previous quarter. This data, in turn, raises concerns about an impending US recession.

Meanwhile, the US personal consumption expenditures (PCE) price index fell to 2.3% year-over-year in March, down from 2.5% previously. Furthermore, the core PCE price index, which excludes volatile food and energy prices, rose 2.6% compared to 3% in February, indicating easing inflationary pressures.

Gold remains under selling pressure, but recession fears, weak GDP data, and a hawkish Federal Reserve outlook support the metal. Negative US macroeconomic data confirms bets that the Fed will resume its interest rate cut cycle in June.

The Federal Open Market Committee is scheduled to release its interest rate decision on May 7, while markets await Friday's nonfarm payrolls data, which will enable the Fed to assess its policy decision before its next meeting.