The Precious Metals Division in the Federation of Industries announced the latest updates on gold prices in the local market with limited trading due to the weekly holiday. The 24-carat gold price recorded 5194 Egyptian pounds, 21-carat at 4545 pounds, 18-carat at 3896 pounds, and the gold pound at 36360 pounds. Recent US inflation data showed consumer prices higher than expected, while producer prices and retail sales declined, reducing market expectations of a significant Federal Reserve interest rate cut in September. The market currently prices in a quarter-point rate cut. Lower US interest rates positively impact gold prices as gold does not yield returns, making it more attractive compared to US debt markets. Meanwhile, markets await the results of the high-risk summit in Alaska between US President Donald Trump and Russian President Vladimir Putin to discuss the Ukraine ceasefire agreement. Trump warned of “severe consequences” if Putin obstructs peace progress.

Positive outcomes may reduce gold demand as a safe haven, whereas failed negotiations or rising tensions could boost gold prices. ANZ Bank indicated that macroeconomic and geopolitical risks will intensify in the second half of the year, enhancing gold’s appeal as a safe haven. The Commodity Futures Trading Commission’s detailed trader commitments report for the week ending August 12 showed a decrease of 4079 gold futures contracts bought by individual traders, funds, and financial institutions, while selling contracts increased by 3486. The report reflects rising speculative demand for gold in both buying and selling amid current geopolitical pressures and changing expectations about US monetary policy.