Gold prices in the local market posted a slight decline on Saturday, coinciding with the weekend closure of global exchanges, after spot gold ended Friday with a sharp weekly drop of about 1.8%. Investors are now awaiting the Jackson Hole symposium and the anticipated U.S. interest rate cut.
Locally, the price of 21-karat gold fell by around EGP 15 compared with Friday’s close, settling at EGP 4,535 per gram, while the ounce dropped by $61 to stand at $3,336. The 24-karat gram reached EGP 5,183, the 18-karat stood at EGP 3,887, and the 14-karat at EGP 3,024, with the gold pound coin stabilizing near EGP 36,280.
On Friday, gold had already edged down by EGP 5, opening at EGP 4,555 for 21-karat and closing at EGP 4,550, while the ounce slipped from $3,338 to $3,336.
Global Pressures and Volatility
The global gold market registered its steepest weekly decline since June, shedding 1.8% amid volatile U.S. economic data and mixed signals over potential tariffs on bullion.
The week opened with heavy selling after clarifications from the U.S. administration on gold tariffs, which weighed on both spot and futures prices. However, weaker-than-expected CPI data on Tuesday briefly supported the metal, reinforcing bets on a September rate cut. Still, stronger-than-forecast PPI data on Thursday reignited concerns over persistent inflation, dampening expectations for swift monetary easing.
Narrow Range and Fed Outlook
Gold remained stuck in a tight trading range, reflecting consolidation and investor caution ahead of fresh catalysts. Traders are now awaiting additional U.S. economic data and the FOMC minutes due next week for clearer signals on the Fed’s policy trajectory.
Dollar, Yields, and Rate Expectations
The U.S. Dollar Index slipped 0.37% to 97.83, pressured by weaker consumer sentiment and rising inflation expectations. However, higher Treasury yields capped gold’s gains. According to CME’s FedWatch tool, traders assign a 95% probability of a 25 basis-point rate cut in September, while the likelihood of a larger 50-point cut has diminished following the latest inflation data.
U.S.–Russia Summit and Geopolitical Risk
The highly anticipated summit between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska concluded without an agreement to end the war in Ukraine, despite being described as “productive.” Geopolitical uncertainty remains a key driver of gold’s safe-haven appeal, alongside expectations of U.S. monetary easing.
Institutional Outlook
Analysts at ANZ Bank forecast that mounting economic and geopolitical risks in the second half of 2025 will continue to bolster gold demand. They note that the metal’s bullish trend remains intact, supported by potential new tariffs, slowing global growth, and a more accommodative U.S. monetary stance.
The Week Ahead
Markets are bracing for a busy U.S. data calendar next week, including:
Tuesday: Building permits and housing starts
Wednesday: July FOMC minutes, Fed speeches, and the start of the Jackson Hole symposium
Thursday: Philadelphia Fed index, jobless claims, preliminary PMI, and existing home sales
Friday: Fed Chair Jerome Powell’s keynote speech from Jackson Hole
Follow the latest news on Google News
