Slight Rise in Gold Prices as Dollar Retreats and Markets Await U.S. Inflation Data

Gold prices saw a slight increase in both local and international markets during Tuesday’s trading session, supported by a weakening U.S. dollar and investor anticipation of the upcoming U.S. inflation report expected later today.

In Egypt, the price of 21-karat gold rose by EGP 5, reaching EGP 4,660 per gram. Meanwhile, the global spot price of gold rose by approximately $17, hitting $3,360 per ounce.

Other local prices recorded the following: 24-karat gold: EGP 5,326 per gram,18-karat gold: EGP 3,994 per gram,14-karat gold: EGP 3,107 per gram,Gold sovereign (8 grams of 21-karat): EGP 37,280.

This comes after a decline in prices on Monday, where gold fell by EGP 5, starting at EGP 4,660 and closing at EGP 4,655 per gram, while the global ounce price dropped by $12—from $3,355 to $3,343.

Tuesday’s gains come as the U.S. dollar paused its recent multi-week rally, with markets focused on the Consumer Price Index (CPI) report due later in the day.

Markets expect headline CPI to rise 2.7% year-on-year in June, while core CPI is forecast to increase 3.0%, according to consensus estimates. A lower-than-expected reading could strengthen expectations for an early interest rate cut by the Federal Reserve.

Trade policy remains a significant risk factor in precious metals markets. Recent statements from the U.S. administration regarding new tariffs have added uncertainty. However, President Trump has signaled a potential reopening of trade talks before the August 1 deadline for imposing tariffs, softening his previous stance on sanctions and duties. While this has somewhat eased fears of broader economic disruption, investors remain cautious.

Monetary policy shifts and global trade dynamics continue to strongly influence the price movements of gold and silver. Upcoming data for CPI and the Producer Price Index (PPI) is likely to play a key role in determining market direction, as investors look for clearer signals on the Federal Reserve’s next move on interest rates.

Current market expectations point to a potential 50 basis point rate cut before the end of the year—a scenario that boosts gold’s appeal as a yield-free hedge, particularly in a low-interest rate environment.