Gold Prices Hold Steady as Markets Await Fed Decision

Gold prices showed relative stability in both local and international markets on Monday, as investors awaited the U.S. Federal Reserve’s decision later this week on the future direction of interest rates, according to a report from the “iSagha” gold and jewelry trading platform.

Saeed Embabi, CEO of iSagha, said that gold prices in the local market remained stable compared to the close of last week’s trading on Saturday evening, with 21-karat gold registering EGP 4,900 per gram, while the ounce stabilized at around $3,642.

He added that 24-karat gold stood at EGP 5,600, 18-karat at EGP 4,200, and 14-karat at EGP 3,267, while the gold pound coin held at EGP 39,200.

Over the past week, local prices had risen by about EGP 35, while the global ounce climbed $56, touching an all-time high of $3,675 on September 9 before closing at $3,643. Since the start of the year, global gold prices have gained roughly 39%, while the local market rose 31%.

Gold has since stabilized after shedding part of its record gains, a retreat that appeared to be a normal round of profit-taking but also reflected a broader tug-of-war between gold’s safe-haven appeal, the strength of the U.S. dollar, and expectations for lower U.S. interest rates.

As the Fed prepares to announce its decision, market bets on rate cuts are growing. This favors gold as a non-yielding asset, but at the same time, the dollar has managed to hold firm, making bullion more expensive for holders of other currencies and slowing buying momentum.

Markets are now pricing in three Fed rate cuts this year, following recent U.S. macro data pointing to labor market weakness. According to CME’s FedWatch tool, traders see a 100% probability that the Fed will cut rates for the first time in nine months at the conclusion of its two-day meeting on Wednesday. Additional cuts are expected in October and December, likely keeping U.S. Treasury yields low and the dollar near its weakest levels since July 24.

Despite the short-term fluctuations, confidence in gold’s broader uptrend remains intact. Reports from UBS and ANZ have raised their year-end price targets to around $3,800, with the possibility of gold approaching $4,000 in 2026 if monetary easing continues and geopolitical tensions intensify.

Central banks, now a key player in the market, continue to expand their reserves—clear evidence that institutional demand extends beyond short-term speculation and is reshaping the global monetary landscape.

As investors look ahead to Fed Chair Jerome Powell’s press conference following Wednesday’s FOMC decision, gold remains caught between the dollar’s strength and policy uncertainty, yet continues to be underpinned by fundamentals: an expected weaker dollar, robust institutional demand, and geopolitical risks that reinforce its role as a safe-haven asset.