Marsad Al Dahab reported a decline in both local and global gold prices during Wednesday's trading session, with prices reaching their lowest levels in nearly five months. The downturn comes amid growing expectations that the United States will maintain a restrictive monetary policy for a longer period, alongside a stronger U.S. dollar and rising Treasury yields. Investors are also awaiting the release of U.S. inflation data later today, while escalating tensions between the United States and Iran continue to support higher oil prices.
The Director of Marsad Al Dahab for Economic Studies stated that the price of 21-karat gold fell by approximately EGP 100 compared to Tuesday’s closing level, reaching around EGP 6,250 per gram, its lowest level since January 19. Meanwhile, gold prices on the global market declined by about $82 per ounce to $4,147, according to World Gold Council data at the time of writing.
The report added that 24-karat gold traded at approximately EGP 7,143 per gram, while 18-karat gold reached EGP 5,357 per gram. The gold pound coin fell to EGP 50,000.
Gold prices had already declined by about EGP 85 during Tuesday’s trading session, with 21-karat gold opening at EGP 6,435 per gram and closing at EGP 6,350. Globally, gold fell from $4,328 to $4,259 per ounce by the end of trading.
According to Marsad Al Dahab, the gap between local and global gold prices widened to approximately EGP 180 per gram, reflecting continued caution among traders in pricing inventory after the sharp market fluctuations witnessed since the beginning of the year.
The report noted that local gold gains since the start of 2026 have narrowed to around EGP 420 per gram, compared with the record gains recorded during January’s price peak. Meanwhile, global gold prices have posted losses of approximately $144 per ounce since the beginning of the year.
The gold pound coin has also declined by nearly EGP 3,400 from its historical peak reached in January, highlighting the scale of the correction witnessed in the Egyptian market over recent months.
Market attention is now focused on the release of the U.S. Consumer Price Index (CPI), one of the most influential indicators for gold prices due to its direct impact on expectations for Federal Reserve monetary policy and interest rates.
Gold has faced significant selling pressure in recent days following stronger-than-expected U.S. employment data, which boosted the U.S. dollar and Treasury yields, prompting investors to reduce their exposure to gold despite ongoing geopolitical tensions in the Middle East.
At the same time, escalating military tensions between the United States and Iran have pushed oil prices higher, renewing concerns over inflationary pressures and reducing expectations for Federal Reserve rate cuts in the coming months.
Market forecasts indicate that U.S. inflation may rise compared with the previous month, potentially supporting a prolonged period of restrictive monetary policy and adding further pressure on gold prices.
Analysts believe that inflation figures above expectations could trigger another wave of declines in gold prices, while lower-than-expected data may allow the precious metal to recover part of its recent losses.
Pressure on gold has also increased following a shift in market expectations regarding U.S. monetary policy. A Reuters survey showed that many economists now expect the Federal Reserve to keep interest rates unchanged through the end of the year, reducing expectations for rate cuts and strengthening the U.S. dollar at the expense of non-yielding assets such as gold.
On the domestic front, recent price declines have contributed to a modest improvement in sales activity, with some consumers and investors returning to the market, particularly for gold bars and smaller investment products.
Marsad Al Dahab believes that global markets are currently undergoing a broad repricing phase following stronger U.S. employment data, as inflation and interest-rate expectations have become the primary drivers of market sentiment, surpassing the influence of geopolitical tensions that traditionally supported gold as a safe-haven asset.
Despite ongoing military tensions in the region, the strength of the U.S. dollar and rising Treasury yields remain the most influential factors affecting gold prices in the short term.
Although prices have declined, central bank purchases continue to provide strong structural support for gold. Many central banks have continued increasing their reserves this year as part of broader efforts to diversify reserve assets and reduce dependence on U.S. Treasuries and the dollar.
Despite the current correction, several international financial institutions remain constructive on gold's medium- and long-term outlook. Goldman Sachs, for example, expects gold prices to reach approximately $5,400 per ounce by the end of 2026, supported by continued central bank buying and long-term investment demand.
The widening gap between local and global prices also reflects continued caution within the Egyptian market, as traders await clearer signals from international markets and U.S. inflation data before making new purchasing decisions.
The decline of the gold pound coin to EGP 50,000 is one of the most notable developments in the local market, returning prices to levels not seen in nearly five months and prompting many investors to reassess gradual buying opportunities following the recent correction.
Marsad Al Dahab expects gold prices to remain highly sensitive to U.S. economic data and Federal Reserve policy expectations in the coming period, with significant volatility likely to persist across global markets.
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