Gold prices declined in both local markets and global exchanges on Thursday, pressured by a stronger U.S. dollar and a wave of profit-taking, as markets await the release of U.S. inflation data, which will help shape the next steps in monetary policy, according to a report by the online trading platform iSagha.
Saeed Embabi, CEO of iSagha, said that local gold prices fell by about EGP 25 during Thursday’s trading compared to the previous day’s close, with 21-karat gold settling at EGP 4,870 per gram. Globally, spot gold dropped by $25 to reach $3,621 per ounce.
He added that 24-karat gold recorded EGP 5,566 per gram, 18-karat stood at EGP 4,174, while 14-karat was priced at EGP 3,247. The gold pound coin remained stable at EGP 38,960.
Gold had previously risen by EGP 20 on Wednesday, with 21-karat opening at EGP 4,875 and closing at EGP 4,895, while the ounce rose $15, from $3,631 to $3,646.
Dollar Pressure and Anticipated U.S. Data
Analysts noted that gold is facing pressure from a stronger U.S. dollar and rising Treasury yields, in addition to profit-taking. However, prices holding above the $3,600 level reflect the persistence of bullish momentum, especially after U.S. data showed a surprise decline in producer prices and weakness in the labor market.
The U.S. Bureau of Labor Statistics reported that the Producer Price Index (PPI) fell to 2.6% in August from 3.3% in July, while the core index (excluding food and energy) rose only 2.8%.
These figures, coupled with weaker-than-expected employment data, boosted expectations that the Federal Reserve will cut interest rates by 25 basis points at its upcoming meeting, with markets pricing in the likelihood of three similar cuts before year-end.
Monetary Policy Bets and Geopolitical Tensions
Markets are now awaiting jobless claims and the Consumer Price Index (CPI), which will be decisive in shaping expectations regarding the pace of Fed rate cuts. While a stronger reading could support the dollar at gold’s expense, expectations of aggressive monetary easing, along with escalating geopolitical tensions in Ukraine and Eastern Europe, remain supportive factors for the precious metal as a safe-haven asset.
On the international front, U.S. President Donald Trump escalated trade pressures by imposing new tariffs, while Poland witnessed its first direct confrontation with Russian drones—developments that may add further support for gold amid heightened geopolitical risks.
Stock Markets on the Rise
Meanwhile, record gains in U.S. and Japanese equity markets have led some investors to temporarily reduce gold holdings. The S&P 500 and Nasdaq both hit new all-time highs, while Japan’s Nikkei 225 jumped more than 1% to a record level on Thursday.
Caught between equity market volatility and shifting monetary policy expectations, gold remains squeezed between short-term headwinds and long-term supports, with markets now waiting for the Federal Reserve to set its direction next week.
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