Profit-taking pushes gold lower amid market anticipation of U.S. Federal Reserve meeting

Gold prices declined in local markets on Monday, in tandem with a drop in global ounce prices, after the precious metal briefly touched a two-month high. The pullback was driven by profit-taking, even as geopolitical tensions in the Middle East persist and markets await the outcomes of the upcoming G7 leaders' summit and the U.S. Federal Reserve’s monetary policy meeting later this week.

Gold prices in local markets dropped by EGP 50 during Monday’s trading session, compared to closing prices on Saturday evening. The price of 21-karat gold recorded EGP 4,850 per gram, while the global ounce price fell by $34 to settle at $3,415, after reaching a two-month high earlier in the session at $3,453.

The 24-karat gold gram recorded EGP 5,572, while 18-karat gold reached EGP 4,179. The 14-karat gold gram was priced at EGP 3,250, and the gold pound coin was sold at EGP 39,000.

Last week, local gold prices rose by EGP 240, as 21-karat gold opened the week at EGP 4,660 and closed at EGP 4,900. Globally, gold gained $120 per ounce during the week, moving from $3,310 to $3,430.

In global markets, gold prices posted a notable increase earlier today, with the ounce reaching $3,453 — its highest level in two months — before slightly retreating due to profit-taking by investors.

Gold continues to be supported by concerns over escalating regional tensions, although profit-taking pressure has curbed further sharp gains.

Meanwhile, silver prices in local markets remained stable, despite slight increases in the global ounce price, which was supported by similar safe-haven flows that are currently driving gold. Expectations that the Federal Reserve may adopt a more dovish monetary policy stance later this year are also playing a role, although a stronger U.S. Dollar Index and renewed investor risk appetite in equities have limited silver’s upward momentum.

Looking ahead, markets are closely watching the upcoming U.S. Federal Reserve decision scheduled for Wednesday. The Fed is widely expected to keep interest rates within the current range of 4.25%–4.50%. The Federal Open Market Committee (FOMC) will also present its forward guidance through Fed Chair Jerome Powell’s press conference and the release of the famous “dot plot,” which outlines individual committee members’ views on the path of interest rates.