Gold Prices Climb as US Dollar and Treasury Yields Retreat

Gold prices in Egypt and internationally rose on Tuesday, supported by a retreat in the US dollar and Treasury yields. The price of 21-karat gold increased by EGP 15 to EGP 6,150 per gram, while the international price climbed by $33 to $4,175 per ounce. The 24-karat gold price reached EGP 7,029 per gram, and the Egyptian gold pound was priced at around EGP 49,200. The rise came amid easing expectations of an October interest-rate hike, though elevated yields limited the gains.

Global markets saw gold recover after US Treasury yields declined, improving the metal’s appeal to investors holding other currencies. However, higher yields continue to pose a challenge for gold, as they make bonds and other income-generating assets more attractive. The latest employment figures showed a modest improvement in private-sector job gains, reducing expectations of an October rate hike to roughly 21%, down from nearly 70% in December.

Investors are closely monitoring the Federal Reserve’s next moves, with the minutes of its September meeting scheduled for release. The Fed must balance labor-market conditions against ongoing inflation pressures, which remain above its 2% target. Fiscal concerns in Europe have also driven demand for gold as a safe haven, though inflation, yields, and dollar strength continue to constrain its upside.

Long-term forecasts suggest gold could reach new record highs by 2027, with an expected annual average price of $5,330 per ounce. Bundesbank President Joachim Nagel highlighted gold’s role in reserve diversification and its protection against geopolitical risks. These factors continue to support gold’s appeal despite short-term market pressures.