Gold prices declined in both local and global markets during Tuesday’s trading, as markets remain in a wait-and-see mode ahead of key U.S. economic data that could reshape expectations for the Federal Reserve’s monetary policy path through 2026, according to a report by the iSagha platform.
Saeed Imbaby, Executive Director of iSagha, said that gold prices in the domestic market fell by around EGP 15, with 21-karat gold recording EGP 5,740 per gram. This came in parallel with a $10 decline in global spot prices, with the ounce trading at $4,295.
Imbaby added that 24-karat gold stood at around EGP 6,560 per gram, 18-karat gold at EGP 4,920, while the gold pound reached EGP 45,920.
He explained that gold slipped below the $4,300-per-ounce level as investors await closely watched U.S. labor market data. Weaker-than-expected figures could support prices, while stronger data may trigger heightened volatility by altering bets on the Federal Reserve’s monetary policy.
Imbaby noted that markets are currently inclined toward caution ahead of the data release, particularly following comments by Federal Reserve Chair Jerome Powell during the central bank’s latest meeting. Powell indicated that most members of the Federal Open Market Committee now see greater risks to the labor market than to inflation.
According to Imbaby, these remarks boosted expectations for another interest-rate cut, providing support to gold prices. He pointed out that November labor market data, due later today, could reinforce those expectations and help prices climb back above the $4,300 level.
However, he warned that stronger-than-expected results could shift the FOMC’s focus back toward inflation, raising doubts over the pace of future rate cuts and increasing market volatility.
Investors are closely watching delayed nonfarm payrolls reports for October and November, which were postponed due to the recent government shutdown. The Fed’s monetary policy trajectory remains the dominant driver of market sentiment, especially after last week’s 25-basis-point rate cut.
The Federal Reserve has lowered interest rates by a total of 75 basis points so far this year, amid signs of labor market cooling, despite inflation remaining above the 2% target.
Upcoming economic data are expected to play a crucial role in shaping near-term rate expectations, as weaker readings could strengthen the case for policymakers to accelerate monetary easing.
In addition to nonfarm payrolls, traders are also monitoring ADP employment data, retail sales, and preliminary readings of the S&P Global Purchasing Managers’ Index (PMI).
Economists expect the November nonfarm payrolls report to show job gains of around 50,000, with the unemployment rate holding steady at 4.4%. The report will also include partial revisions to October data, as some labor market information was not collected during the government shutdown. By comparison, payrolls increased by 119,000 in September.
During the latest FOMC meeting, Powell noted that nonfarm payroll gains reported since April may have been overstated by around 60,000 jobs, emphasizing that the Fed is in a position to wait and monitor economic developments, even as policymakers remain divided over the need for further monetary easing in 2026.
Market expectations, according to the CME FedWatch tool, point to rates being held steady in January, with roughly a 40% probability of a cut in March.
In the same context, New York Fed President John Williams said monetary policy is well positioned as the United States enters 2026, expecting inflation to ease further while labor market risks increase.
By contrast, Federal Reserve Governor Steven Miran reaffirmed his dovish stance, arguing that underlying inflation pressures are lower than headline indicators suggest. He warned against maintaining an overly restrictive policy that could result in unnecessary job losses, and reiterated his preference for lower interest rates in the period ahead.
On the geopolitical front, reports of progress in U.S.-led Russia–Ukraine peace talks helped slightly ease tensions, limiting safe-haven inflows into gold. Ukrainian officials described “real progress” in talks held in Berlin, noting that discussions with U.S. envoys were constructive and included strong security guarantees for Kyiv.
U.S. President Donald Trump echoed this optimism, saying a peace agreement is “closer than ever,” while senior U.S. officials indicated that Washington is prepared to offer NATO-like security guarantees as part of a negotiated framework.
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