Gold prices in local markets fell during Monday’s trading session, despite a slight uptick in global spot gold prices, driven by a relative decline in the U.S. dollar globally.
According to trading data, local gold prices dropped by EGP 20 during the day compared to closing levels on Saturday evening. The price of 21-karat gold recorded EGP 4,590 per gram, while the global ounce price rose by $14, reaching approximately $3,288.
Other price levels were as follows:
24-karat: EGP 5,246 per gram
18-karat: EGP 3,934 per gram
14-karat: EGP 3,060 per gram
Gold pound coin: EGP 36,720
Last week, local gold prices fell by EGP 190, with 21-karat gold starting at EGP 4,800 and closing at EGP 4,610. Meanwhile, global gold lost $95 per ounce, declining from $3,369 to $3,274 by the end of the week.
The global gold market opened the week on a calm note with limited gains, supported by dollar weakness after the greenback touched its lowest level in five weeks. Investor appetite shifted toward equities, with lower interest in traditional hedging instruments like gold.
At the end of last week, gold faced downward pressure due to improving trade and geopolitical sentiments. The signing of a formal trade agreement between the U.S. and China, along with promises of additional deals before July 9, has reinforced global economic optimism.
China also announced plans to accelerate rare earth metal exports to the U.S., signaling rare cooperation amid previously strained relations. Meanwhile, Iran showed a more diplomatic tone toward Washington, and media reports suggested an imminent end to the conflict between Israel and Gaza. These developments significantly reduced the geopolitical risk premium supporting gold as a safe haven.
Saeed Embabi, Executive Director of the , pointed to Donald Trump’s proposed tax bill as a factor that could further support gold and pressure growth stocks. The bill includes sweeping tax cuts accompanied by increased federal spending — a combination that the U.S. Congressional Budget Office estimates could widen the budget deficit to around $5 trillion over the next decade.
This fiscal path has already pushed the yield on 30-year U.S. Treasury bonds to 5.1%, tightening debt markets and limiting the Federal Reserve’s ability to proceed with its anticipated rate cuts.
The mounting U.S. deficit and inflation fears have bolstered gold, recently pushing it to record highs above $3,500 per ounce before settling near $3,290, as investors continue turning to precious metals as a hedge against macroeconomic instability.
Recent data shows central banks are maintaining aggressive gold purchases. J.P. Morgan has raised its year-end price target for gold to $3,675 per ounce, encouraging investors to allocate 5% to 10% of their portfolios to the yellow metal.
Key U.S. Economic Data to Watch This Week
Monday: Chicago PMI and the Texas Manufacturing Outlook Survey will be released.
Tuesday: ISM Manufacturing PMI and the JOLTS Job Openings report, which offers insights into labor demand.
Wednesday: ADP Private Payrolls Report, often a leading indicator for official employment figures.
Thursday (key day): A flurry of critical releases including:
The Non-Farm Payrolls (NFP) monthly jobs report
Weekly jobless claims
ISM Services PMI
This week’s data will be closely watched by markets to assess the strength of the U.S. economy and the Fed’s potential monetary policy direction in the second half of 2025.
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