Slight Decline in Local Gold Prices as Global Ounce Falls Amid Cautious of U.S. Economic Data

Gold prices in the local market recorded a slight but noticeable decline during Tuesday’s trading session, in line with a drop in global gold prices, as investor caution prevailed ahead of the release of key U.S. jobs and inflation data later this week. These indicators are expected to play a decisive role in shaping the future path of U.S. Federal Reserve monetary policy, according to a report issued by the iSagha platform.

Engineer Saeed Embabi, Executive Director of iSagha, said that local gold prices fell by around EGP 30 during today’s trading, with the price of 21-karat gold settling at EGP 6,730 per gram. Meanwhile, the global gold ounce declined by about $35 to approximately $5,048.

According to the report, the price of 24-karat gold reached around EGP 7,691 per gram, while 18-karat gold recorded about EGP 5,769 per gram. The price of the gold pound stood at nearly EGP 53,840.

On the global front, gold and silver prices retreated on Tuesday after posting gains over two consecutive sessions, amid a slight rebound in the U.S. dollar from its lowest level in more than a week. This came as investors awaited the release of major U.S. jobs and inflation data in the coming days to assess the outlook for interest rates.

Precious metal prices have pulled back from the record highs reached in late January following a sharp and rapid rally. By Friday’s close, gold prices had fallen about 11% from their peak recorded on January 29, although they remained up roughly 15% year-to-date.

In this context, Kevin Hassett, Economic Advisor to the White House, said on Monday that U.S. job gains may slow in the coming months due to weaker labor force growth and higher productivity—factors that are influencing ongoing discussions within the Federal Reserve.

Investors expect the Federal Reserve to cut interest rates at least twice this year, by 25 basis points each, with the first cut likely in June. Gold, which does not yield interest, typically benefits from a low-interest-rate environment.

On the geopolitical front, the results of Japan’s early elections held on Sunday helped reduce political uncertainty, supporting market sentiment. This, along with signs of easing tensions in the Middle East, boosted investors’ risk appetite.

Market expectations also point to at least two interest-rate cuts by the U.S. Federal Reserve in 2026, alongside growing concerns over the central bank’s independence. These factors have kept the U.S. dollar near its lowest level in more than a week, providing additional support for gold.

At the same time, investors appeared reluctant to take large positions ahead of the release of the U.S. non-farm payrolls report scheduled for Wednesday and U.S. consumer inflation data due on Friday, amid heightened uncertainty.

Gold’s overall direction remains unclear, as bets on a more accommodative Federal Reserve policy are being offset by reduced demand for the metal as a safe haven, driven by a relative improvement in geopolitical conditions.

In this regard, indirect talks between the United States and Iran over the future of Iran’s nuclear program concluded on Friday with a general agreement to continue along the diplomatic path. This eased concerns about the possibility of a military confrontation in the Middle East, improved investor confidence, and pushed capital flows away from gold during Asian trading on Tuesday.

Iranian Foreign Minister Abbas Araghchi described the eight-hour talks as a “good start” conducted in a positive atmosphere, while U.S. President Donald Trump said the discussions were “very good,” noting that another meeting would be held early this week.

However, concerns over the independence of the U.S. Federal Reserve resurfaced following Trump’s remarks on Saturday, in which he suggested he might sue his new nominee for Fed chair, Kevin Warsh, if interest rates were not cut. U.S. Treasury Secretary Scott Bessent also did not rule out the possibility of opening a criminal investigation into Warsh should he refuse to lower rates.

This comes as expectations grow for two additional interest-rate cuts by the U.S. central bank this year, with the first anticipated in June. These expectations have pushed the dollar to its lowest level in more than a week, helping to support gold prices and limit losses.

Markets are now closely watching a series of key U.S. macroeconomic data releases in the current period for clearer signals on the Federal Reserve’s rate-cutting trajectory. The week begins with the release of U.S. monthly retail sales data later today, but the main focus remains on the non-farm payrolls report on Wednesday and U.S. consumer inflation data on Friday, given their direct impact on dollar movements and gold prices.

In a related development, the People’s Bank of China said on Saturday that the central bank continued its gold purchases for the fifteenth consecutive month in January, highlighting sustained demand amid financial concerns in major economies.

Additionally, reports indicate that Chinese regulators have advised financial institutions to reduce their holdings of U.S. Treasury bonds due to concerns over concentration risks and market volatility—moves that could further enhance gold’s appeal as a key global hedge asset.