Gold Prices Remain Stable Locally and Globally as Markets Await U.S. Economic Data

Gold prices in the local market and on the global exchange remained stable during Wednesday’s trading, amid broad anticipation of upcoming U.S. macroeconomic data, which is expected to provide clearer signals on the trajectory of interest rate cuts by the Federal Reserve, according to a report issued by I Sagha, a platform for gold and jewelry trading.

Saeed Embabi, CEO of I Sagha, stated that local prices were stable compared to Tuesday’s closing, with 21-karat gold registering EGP 5,610 per gram, while the ounce held steady at USD 4,210. The price of 24-karat gold stood at EGP 6,411, and 18-karat gold at EGP 4,809, while the gold pound recorded EGP 44,880.

On global markets, gold traded near the lower end of its daily range during the European session, holding above USD 4,200 per ounce amid mixed signals. Analysts believe that the generally positive tone in equity markets represents a headwind for the safe-haven metal, as investors prefer to wait for key U.S. data before taking new positions.

Market expectations point to a potential cut in borrowing costs by the Federal Reserve at next week’s policy meeting, pushing the U.S. dollar to a near two-week low, which in turn provided some support to gold. Additionally, ongoing geopolitical uncertainty stemming from the prolonged Russia–Ukraine conflict and the risk of escalation has added support for safe-haven assets, although this effect has been partially offset by rate-cut expectations.

Recent U.S. macroeconomic indicators have shown signs of gradual slowdown, while cautious signals from Federal Reserve officials have strengthened expectations for a 25-basis point rate cut at the upcoming Federal Open Market Committee (FOMC) meeting. According to the CME Group’s FedWatch tool, traders assign nearly a 90% probability to such a move, keeping the dollar under pressure and supporting non-yielding gold.

Separately, reports suggest that Kevin Hassett is the leading candidate to head the Federal Reserve, and is expected to implement the president’s calls for interest rate reductions. Meanwhile, talks between Russia and the U.S. failed to yield a compromise on a potential peace agreement in Ukraine, with Russian officials threatening preparedness for conflict with Europe—further fueling geopolitical risk.

Investors are awaiting the U.S. ADP private-sector employment report, scheduled for release at 13:15 GMT, alongside the ISM services PMI. However, the main focus remains on Friday’s Personal Consumption Expenditures (PCE) inflation data, delayed due to the U.S. government shutdown, which is expected to offer critical guidance on inflation trends and the future path of monetary policy.

Major financial institutions, including Bank of America and JPMorgan, expect the Federal Reserve to ease policy at its December 9–10 meeting. Meanwhile, U.S. interest rate futures imply an 87% probability of a rate cut next week, according to the Chicago Mercantile Exchange’s FedWatch tool.