Gold Prices Fall Locally and Globally as Markets Await Fed Decision

Gold prices declined in both the local market and on the global exchange during Thursday’s trading session, as markets awaited the upcoming Federal Reserve meeting to determine the future path of interest rates, according to a report issued by “iSagha,” a platform for gold and jewelry trading.

Saeed Embabi, CEO of iSagha, stated that local gold prices fell by EGP 15 compared to the end of yesterday’s trading, with 21-karat gold reaching EGP 5,600 per gram, while the ounce dropped by around USD 20, settling at USD 4,190.

Meanwhile, 24-karat gold recorded EGP 6,400, and 18-karat stood at approximately EGP 4,800, while the gold pound (coin) remained stable at EGP 44,800.

The report noted that this decline comes against the backdrop of heightened anticipation for next week’s Federal Reserve monetary policy meeting, as gold moves within a narrow range after recently hitting its highest level in six weeks.

Markets are pricing in an interest rate cut during the December 9–10 meeting, supported by U.S. data showing a slowdown in the labor market, including an unexpected drop in the ADP employment index, along with mixed readings from the ISM services PMI, which indicated weaker demand and easing inflationary pressures.

Markets are also awaiting the release of new data later today, including the Challenger job cuts report and weekly jobless claims.

A weaker U.S. dollar continues to provide key support for gold, with the U.S. Dollar Index trading around 98.80, its lowest level in a month, extending losses for the seventh consecutive session.

Conversely, rising global bond yields are weighing on the metal, following a surge in Japanese bond yields to 1.9% — the highest since 2007 — which spilled over to U.S. markets, where the yield on 10-year Treasury bonds rose to 4.08%.

The latest ISM services reading showed an increase to 52.6 in November, its highest level in nine months; however, underlying components revealed a decline in prices paid, new orders, and persistent weakness in employment.

According to the CME FedWatch Tool, markets are pricing in an 89% probability that the Federal Reserve will cut interest rates by 25 basis points at the upcoming meeting.