Egypt's Gold Prices Fall Amid Rising Treasury Yields
Gold prices have declined globally and in Egypt over the past week, influenced by rising US Treasury yields and investor caution ahead of the Federal Reserve meeting. The price of 21-karat gold dropped around 1% locally to EGP 6,265 per gram, while the global gold ounce lost 1.8% to close at US$4,349 per ounce.
The decline in gold prices was exacerbated by the release of US inflation data, which showed a 0.4% increase in August and a 3.4% year-on-year rise. This reinforced expectations that the Federal Reserve will maintain a cautious monetary-policy stance, prompting investors to reassess interest-rate expectations.
The higher returns on debt instruments raised the opportunity cost of holding non-yielding assets like gold, contributing to its decline. However, geopolitical tensions, inflation risks, and investment demand continue to support gold in the longer term.