Gold prices slipped in both local and global markets on Saturday, coinciding with the weekly closure of global exchanges. The decline followed a weekly gain of around 2.1% for the ounce, as sharp selling pressure emerged at the end of the week. The movements come amid rising expectations that the Federal Reserve may halt its monetary easing cycle, following hawkish statements from most officials, according to iSagha, a platform for gold and jewelry trading.
Saeed Embaby, CEO of the platform, said that local gold prices fell by about EGP 15 during today’s session, with 21-carat gold trading at EGP 5,450. Meanwhile, the ounce ended the week at $4,086, up $85 for the week.
He added that 24-carat gold reached EGP 6,229, 18-carat gold stood at EGP 4,671, and the gold pound remained stable at EGP 43,600.
The report noted that gold prices on Friday had declined by around EGP 5, with 21-carat opening at EGP 5,570 and closing at EGP 4,565. Globally, the ounce fell from $4,178 to $4,086.
Global Selling Pressure and Rate-Cut Expectations Drop
On Friday, gold dropped about 2% after touching a daily low of $4,086 as markets repriced expectations for a December rate cut. According to market data, the probability of a rate cut fell from 72% a week ago to 50% currently, as Fed officials focus on persistent inflation pressures despite weak labor markets.
Jeffrey Schmid, Federal Reserve member from Kansas City, said, “Inflation remains extremely high,” emphasizing that current monetary policy is “in the right place.” Fed Chair Steven Miran maintained a hawkish stance, stating that the data calls for more tightening, not easing.
U.S. Treasury yields added to the pressure on gold, with the 10-year yield rising to 4.10% and real yields climbing to 1.862%, levels typically associated with reduced gold appeal.
Impact of U.S. Government Shutdown
Although the longest U.S. government shutdown in history ended after 43 days, markets expect visible effects in the coming weeks, with some economic data, including October’s Consumer Price Index, permanently lost. These data gaps provide the Fed with justification to maintain interest rates unchanged in December.
Despite gold closing the week with a 2% gain, it remains more than 3% below its weekly peak, reflecting the metal’s sensitivity to Fed signals and shifts in risk appetite.
China’s Economic Slowdown Pressures Commodities
Bloomberg data indicated a sharper-than-expected slowdown in China’s economic activity at the start of Q4, with fixed-asset investment contracting by 1.7% in the first ten months of the year and industrial output growth slowing to 4.9%—the weakest since early 2025. Despite a government stimulus package worth one trillion yuan, domestic demand remains weak, and lending has not rebounded as hoped.
New U.S. Trade Agreements
On the economic front, the U.S. announced a new trade deal with Argentina to boost investment cooperation, granting preferential access for American exports—including pharmaceuticals, chemicals, and machinery—to Argentine markets. Washington also unveiled frameworks for similar trade agreements with El Salvador and Ecuador.
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