Gold Prices Steady Locally Amid Anticipation of U.S. Inflation Data and U.S.-China Trade Talks

Gold prices in the local market remained relatively stable during Tuesday’s trading session, coinciding with a slight increase in global spot prices, as markets closely monitor upcoming U.S. inflation data and developments in trade negotiations between the United States and China.

The price of 21-karat gold held steady at EGP 4,670 per gram, showing little change from Monday’s closing, while the global ounce price rose by $12 to reach $3,339.

The 24-karat gold was recorded at EGP 5,337 per gram, while 18-karat gold stood at EGP 4,003. The 14-karat gold price reached EGP 3,114 per gram, and the gold pound was priced at EGP 37,360.

Gold prices in local markets had increased by EGP 10 during Monday’s trading, as the 21-karat gram opened at EGP 4,660, climbed to a peak of EGP 4,780, and closed at EGP 4,670. Globally, the ounce rose by $17, opening at $3,310 and ending the session at $3,327.

Monday’s trading witnessed notable volatility, with the 21-karat gram jumping from EGP 4,660 to EGP 4,780 before retreating to EGP 4,670. The global ounce saw an upward move from $3,310 to $3,327, marking a $17 increase.

These limited price movements come amid heightened anticipation ahead of the U.S. Consumer Price Index (CPI) report, scheduled for release on Wednesday. The CPI is one of the key indicators used by the Federal Reserve to guide its monetary policy, with the next Fed meeting set for June 17–18.

Higher-than-expected inflation could reduce the likelihood of interest rate cuts, putting pressure on gold prices. Conversely, a weaker CPI reading may support gold as a hedge against potential monetary easing.

Analysts expect the Federal Reserve to keep interest rates unchanged at its upcoming meeting. However, current economic indicators suggest a potential 50 basis point rate cut by the end of the year.

Meanwhile, the report highlighted that U.S.-China trade talks are continuing for a second day in London, in an effort to ease tensions that began with reciprocal tariffs and have since expanded to include restrictions on rare earth exports.

The two countries had imposed tariffs on each other in April, before agreeing to a temporary truce in May, which helped calm global market concerns.

Expectations indicate that these negotiations may have a direct impact on gold and dollar movements in the coming days, as investors evaluate the prospects of reaching agreements that could improve the investment climate and ease inflationary pressures.