Marsad al-Dhahab: Local Gold Prices Drop by EGP 240 Since Early April

Gold prices in the local market declined during Thursday’s trading, despite a rise in global ounce prices, supported by a weaker U.S. dollar and renewed diplomatic efforts to resolve tensions between the United States and Iran. These developments helped ease inflation concerns, according to a report by the Marsad al-Dhahab for Economic Studies.

Dr. Walid Farouk, gold and jewelry analyst and head of the Marsad al-Dhahab, stated that local gold prices fell by around EGP 30 compared to Wednesday’s close, with 21-karat gold recording EGP 7,050 per gram. Meanwhile, the global ounce rose by approximately $29 to reach $4,817 at the time of writing, based on data from the World Gold Council.

Prices for other gold categories stood at EGP 8,057 per gram for 24-karat, EGP 6,043 for 18-karat, while the gold pound (8 grams of 21-karat) reached EGP 56,400.

On Wednesday, gold prices had already declined by EGP 85, with 21-karat gold opening at EGP 7,165 and closing at EGP 7,080. Globally, the ounce dropped by $49, from $4,841 to $4,792.

Farouk noted that total losses in the local gold market have reached approximately EGP 240 since the beginning of April, including EGP 210 during the first two weeks alone.

Data also showed that local gold prices declined by 2.9% during the first half of April, equivalent to EGP 210, as 21-karat gold fell from EGP 7,290 to EGP 7,080. In contrast, the global ounce increased by 2.7%, or $124, rising from $4,668 to $4,792.

Global Market Movements

Globally, gold prices resumed gains on Thursday, approaching their highest levels in four weeks, supported by the weakening U.S. dollar.

However, gold remains about 8% lower since the outbreak of the war, despite gaining 18% from its March 23 low of $4,097. The metal has been under pressure since reaching a record high of $5,626 on January 29.

Gold has continued to trade above the $4,800 level amid international mediation efforts to maintain a ceasefire between the United States and Iran, which is set to expire next week. Meanwhile, the Strait of Hormuz remains a key geopolitical flashpoint, with ongoing restrictions on maritime navigation.

Brent crude opened Thursday’s session at $94.91 per barrel, down significantly from over $115 in late March. This decline has helped ease inflationary pressures and reduce expectations for tighter monetary policy.

Lower oil prices have also contributed to moderating inflation expectations, potentially encouraging central banks to keep interest rates elevated for a longer period.

The U.S. dollar index fell by more than 0.2% to 97.83, its lowest level in six weeks, extending losses for a ninth consecutive session and providing additional support to gold prices.

In the same context, the United States and Iran are considering extending the ceasefire for an additional two weeks to allow more time to reach a final agreement, despite continued restrictions in the Strait of Hormuz.

According to the Associated Press, both sides have reached a preliminary understanding to continue diplomatic efforts following an inconclusive initial round of talks in Pakistan.

Market expectations indicate that the Federal Reserve is likely to keep interest rates unchanged this year, as confirmed by statements from officials, including Alberto Musalem and Beth Hammack, who signaled that restrictive monetary policy may remain in place for an extended period.

Suki Cooper, Head of Global Commodities Research at Standard Chartered, said gold remains vulnerable to volatility given the fragility of the ceasefire and the market’s focus on real yields, noting that monetary policy developments will be the key driver of price direction in the coming period.

According to the CME FedWatch tool, expectations for interest rate cuts have been pushed back to late 2026, limiting bets on a weaker dollar and keeping gold near recent highs, despite being a non-yielding asset.