Gold prices declined in Egypt’s local markets on Thursday, even as global spot prices rose, supported by a weakening U.S. dollar and expectations of a potential interest rate cut by the Federal Reserve later this year. Investors are closely watching for more clarity on U.S. President Donald Trump’s trade policy.
According to market data, local gold prices dropped by approximately EGP 5 per gram compared to Wednesday’s close, with the 21-karat gold falling to EGP 4,620. Meanwhile, the global spot price climbed by $26 to reach $3,329 per ounce.
In other categories, 24-karat gold registered EGP 5,280 per gram, 18-karat at EGP 3,960, and 14-karat at EGP 3,080. The gold pound (8 grams of 21-karat) was priced at EGP 36,960.
On Wednesday, gold prices had seen an upward move of EGP 5, with 21-karat gold opening at EGP 4,620 and closing at EGP 4,625. Globally, gold rose by $13 during the session, starting at $3,303 and ending at $3,316.
Despite the global uptrend, the local price dip was attributed to liquidity shortages and growing secondary market reselling activities, market observers noted.
Later today, Egypt’s Central Bank is expected to announce its decision on interest rates. Analysts largely predict no change in the current rates, despite a slight cooling of inflation for the first time in three months.
The Central Agency for Public Mobilization and Statistics (CAPMAS) reported on Wednesday that urban inflation eased to 14.9% in June on an annual basis, down from 16.8% in May, primarily due to slower rises in food and beverage prices.
In its previous meeting in May, the Central Bank of Egypt cut the overnight deposit and lending rates as well as its key policy rate by 100 basis points, bringing them to 24.00%, 25.00%, and 24.50%, respectively. The discount rate was also reduced to 24.50%.
Gold prices globally rose after the release of the Federal Reserve’s June meeting minutes, which reinforced expectations of a rate cut later this year.
The minutes from the June 17–18 meeting showed that several committee members anticipated a reduction in interest rates, although they warned of heightened inflation risks stemming from trade tensions and new tariffs introduced by the Trump administration.
The Federal Open Market Committee (FOMC) voted unanimously to keep interest rates unchanged at the June meeting, with the next policy review scheduled for July 29–30.
Concerns over new inflationary pressures emerged after Trump escalated his tariff policy, imposing a 50% levy on copper imports and Brazilian goods starting August 1, along with 20–40% tariffs on other countries. While global equity markets largely shrugged off the developments, continued tariff uncertainty could fuel gold’s appeal — especially if energy prices rise due to geopolitical supply risks.
The U.S. Dollar Index dropped 0.2% amid rising expectations of a Fed rate cut. IMF data showed the dollar’s share of global reserves fell to 57.7%, while currencies like the Swiss franc and euro gained, reflecting a broader shift in global capital.
A weaker dollar generally boosts gold demand by making the metal cheaper for holders of other currencies.
In a report issued today, the World Gold Council (WGC) stated that gold prices are poised to benefit from the growing U.S. deficit and increasing fiscal instability — even in the absence of an immediate crisis.
“With the passage of the so-called ‘One Big, Beautiful Bill,’ the U.S. faces an additional $3.4 trillion in debt over the next decade and a $5 trillion debt ceiling increase — unless the Trump administration’s ambitious growth forecasts are met,” the WGC analysts wrote.
They noted that such fiscal uncertainty has already triggered a global reallocation of capital. The weakening U.S. dollar has fueled both rising gold prices and U.S. Treasury yields.
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