Local Gold Rises EGP 40 Despite Global Ounce Decline.. Markets Await Fed Minutes and Egypt’s Central Bank Decision

Marsad Al Dahab reported that gold prices in the local market rose during Wednesday’s trading, despite a decline in the global ounce, pressured by a stronger U.S. dollar and higher U.S. Treasury yields. Investors are also assessing the impact of escalating tensions in the Middle East while awaiting the release of the U.S. Federal Reserve’s meeting minutes, in addition to the Central Bank of Egypt’s Monetary Policy Committee decision scheduled for Thursday.

The price of 21-karat gold rose by around EGP 40 during the day’s trading to record nearly EGP 5,810 per gram, compared with yesterday’s close, while the global ounce fell by around USD 54 to record USD 4,055.

The price of 24-karat gold recorded around EGP 6,640 per gram, 18-karat gold reached around EGP 4,980 per gram, while the gold pound stood at around EGP 46,480.

Gold ended Tuesday’s trading lower, as 21-karat gold lost around EGP 70, falling from EGP 5,840 to EGP 5,770, coinciding with a USD 64 decline in the global ounce from USD 4,165 to USD 4,101.

Sources told Marsad Al Dahab that delays in completing hallmarking requests for gold jewelry at the Assay and Weights Authority, alongside giving priority to bullion hallmarking, have led to a decline in the volume of finished jewelry available in the market, coinciding with a recovery in demand for gold jewelry in recent weeks.

The sources added that a number of workshops and factories are facing difficulties in delivering orders on schedule due to slow hallmarking procedures. This has affected the availability of some jewelry models at retail stores and created a state of concern within the market, amid calls to speed up pending requests and restore hallmarking rates to normal levels.

Local markets are also awaiting the Central Bank of Egypt’s Monetary Policy Committee decision on Thursday, amid broad expectations that interest rates will remain unchanged, given ongoing inflationary pressures and global geopolitical tensions.

Keeping interest rates unchanged could help maintain the current balance in the gold market, while any unexpected decision may lead to a reassessment of investment demand for the precious metal, especially as many citizens continue to view gold as one of the key tools for saving and hedging.

The central bank decision comes at a time when Egypt’s Purchasing Managers’ Index continues to show a contraction in non-oil private sector activity, reflecting ongoing pressure on demand and liquidity. This is pushing some citizens to prefer investment in bullion and gold pounds over other savings instruments.

Globally, gold prices declined during Wednesday’s trading, pressured by the stronger U.S. dollar and higher Treasury yields, as investors assessed the impact of escalating tensions in the Middle East and awaited the Federal Reserve’s meeting minutes for fresh signals on the future path of monetary policy.

Spot gold fell by more than 1% to trade near USD 4,064 per ounce, while U.S. gold futures for August delivery declined to around USD 4,075 per ounce, after profit-taking pushed the precious metal to give up part of its recent gains.

Analysts believe the sharp rise in oil prices, which exceeded 5% during the session, revived concerns over renewed global inflationary pressures. This reinforced market expectations that U.S. interest rates may remain elevated for longer, supporting the U.S. dollar and weighing on gold, which offers no yield.

Although gold is considered one of the main safe-haven assets during periods of geopolitical turmoil, markets focused more on the implications of higher energy prices and the possibility of continued restrictive U.S. monetary policy, limiting the metal’s ability to benefit from current tensions.

In contrast, several medium-term supportive factors remain in place, led by continued central bank purchases, particularly China’s latest increase in gold reserves in June, alongside the ongoing trend among many central banks to diversify reserves away from the U.S. dollar.

Investors are awaiting the release of the Federal Reserve’s meeting minutes, which are expected to provide clearer signals on the central bank’s direction in the coming meetings. Markets are also watching upcoming inflation and labor market data, which will remain among the most influential drivers of gold prices in the period ahead.

Other precious metals also declined, with silver falling by around 2.4%, platinum down by around 3%, and palladium retreating by around 3.9%, as the selling wave extended across most precious metals amid a stronger dollar and higher U.S. bond yields.