Current Market Trends

Gold prices remained relatively stable in both local and global markets during Wednesday’s trading session, as investors awaited the U.S. Federal Reserve’s monetary policy announcement and the highly anticipated press conference by Fed Chair Jerome Powell later in the day.

Local Market Prices

In Egypt’s local market, conditions were calm compared to Tuesday’s close. The price of 21-karat gold held steady at EGP 4,565 per gram, while global spot gold remained unchanged at around $3,325 per ounce. Further local prices were reported as follows:

• 24-karat gold: EGP 5,217 per gram
• 18-karat gold: EGP 3,913 per gram
• 14-karat gold: EGP 3,044 per gram
• Gold sovereign (8 grams of 21K): EGP 36,520

Global Market Influence

Gold had dropped by EGP 10 per gram on Tuesday, falling from EGP 4,675 to EGP 4,565, despite a minor $8 increase in the global gold price, which moved from $3,317 to $3,325 per ounce. This relative stability in prices reflects a broader market cautiousness ahead of the Federal Open Market Committee (FOMC) decision, which is expected to clarify the direction of interest rates for the coming months.

Future Expectations

Markets widely anticipate that the Fed will maintain rates within the current range of 4.25% to 4.5%, but greater focus lies on Powell’s tone and guidance, as his statements are expected to heavily influence future monetary policy expectations. Analysts note that Powell’s rhetoric at the press conference will be pivotal in determining gold’s next move:

• Any dovish hints toward a future rate cut or monetary easing could propel gold toward new record highs.
• Conversely, a continued commitment to tightening could apply downward pressure on the metal and spark renewed selling.

External Factors

Meanwhile, the U.S. Dollar Index retreated slightly by 0.13% to 98.774, after hitting a five-month high of 99.143 on Tuesday. This slight dollar weakness provided some support for gold, as investors tend to favor the precious metal when the greenback softens, especially amid ongoing geopolitical risk hedging. Despite improved investor sentiment following recent trade deals between the U.S., Japan, and the EU, caution still prevails due to unresolved tariff negotiations with China and persisting global trade tensions, which continue to enhance gold’s appeal as a safe-haven asset.

Upcoming Events

Looking ahead, markets are also eyeing Thursday’s Bank of Japan policy meeting, amid speculation over whether the central bank might raise rates despite subdued inflation and growing political uncertainty in Tokyo. Investors are further awaiting a key batch of U.S. labor market data, including the non-farm payrolls report, private-sector employment figures, and the core PCE price index — the Fed’s preferred measure of inflation — all of which will play a critical role in shaping expectations for the Fed’s next move.

Conclusion

In conclusion, gold prices have remained relatively stable in both local and global markets, awaiting the U.S. Federal Reserve’s monetary policy announcement and the press conference by Fed Chair Jerome Powell. The future of gold prices hangs in the balance, as investors eagerly await the outcome of the FOMC decision and the subsequent press conference. With various external factors at play, including the U.S. Dollar Index and global trade tensions, the next move for gold is uncertain, making it essential for investors to stay informed and up-to-date on the latest market trends and developments.