Gold Rises Locally and Globally Supported by Dollar Decline and Trade Talks Anticipation

Gold prices rose in local markets by mid-day trading on Monday, in tandem with gains in global bullion prices, driven by a weaker U.S. dollar and anticipation of trade talks between the United States and China.

Local gold prices increased by EGP 20 during today’s trading session compared to the close of last week on Saturday evening. The price of 21-karat gold reached EGP 4,680 per gram, while the global ounce price climbed by approximately $27 to reach $3,337.

The price of 24-karat gold recorded EGP 5,349 per gram, 18-karat gold reached EGP 4,012 per gram, 14-karat gold hit EGP 3,120, and the gold pound (8 grams of 21k) recorded EGP 37,440.

Last week, local gold prices rose by EGP 60. The 21-karat gold gram opened trading at EGP 4,600, peaked at EGP 4,720, and closed the week at EGP 4,660. Meanwhile, the global ounce price increased by $20, starting at $3,290, peaking at $3,403, and closing at $3,310.

Today's price surge is supported by the U.S. dollar’s decline, as investors remain cautious ahead of the ongoing trade negotiations between the U.S. and China.

The U.S. dollar index dropped by 0.2%, making dollar-denominated gold more affordable for holders of other currencies, thus increasing its appeal.

This comes as senior U.S. and Chinese officials meet in London to discuss the reciprocal tariffs imposed earlier this year and other trade restrictions. Last month, both sides agreed to a temporary pause, offering some relief to the markets.

Gold is traditionally seen as a safe haven during times of geopolitical and economic uncertainty, and its appeal is further enhanced in low-interest rate environments as it yields no income.

Meanwhile, recent U.S. jobs data showed the addition of 139,000 jobs in May, surpassing expectations. The unemployment rate remained at 4.2%, and wages continued to rise — reducing the likelihood of an imminent interest rate cut by the Federal Reserve.

Upcoming U.S. inflation data this week could influence the Fed’s stance on interest rates. A cooling inflation trend could bolster gold, especially amid ongoing geopolitical tensions in the Middle East and Ukraine, along with the continued weakness of the U.S. dollar.

The Federal Open Market Committee (FOMC) is scheduled to announce its interest rate decision on June 17–18.

Some analysts suggest that any unexpected resolution in political conflicts or the signing of trade agreements could exert downward pressure on gold prices.

However, gold continues to enjoy strong investment demand, fueled by central bank purchases and investors' desire for hedging, according to several leading financial analysts.

In a related context, markets are closely watching this week’s inflation data, starting with the Consumer Price Index (CPI) on Wednesday, followed by the Producer Price Index (PPI) and jobless claims on Thursday, and finally the University of Michigan’s Consumer Sentiment Index on Friday.