Gold prices in Egyptian markets dropped once again on the evening of Monday, July 14, 2025, declining by approximately EGP 20 per gram. This comes after spot gold prices fell globally to $3,340 per ounce, reflecting increased volatility in the precious metal due to ongoing global economic and geopolitical developments.
Latest Local Gold Prices in Egypt:
24K gold: EGP 5,314 per gram, 21K gold: EGP 4,650 per gram, 18K gold: EGP 3,986 per gram, Gold pound (8g of 21K): EGP 37,200
Global Economic Tensions Weigh on Markets
Internationally, markets reacted to renewed trade tensions following controversial statements by U.S. President Donald Trump, who announced plans to impose 30% tariffs on imported goods from Mexico and the European Union, starting August 1.
This decision follows multiple rounds of negotiations between the U.S. and its key trading partners, which have failed to yield a comprehensive agreement. In response, both Mexico and the EU criticized the U.S. measures as unfair and expressed concerns over their potentially damaging economic impact.
The EU, while urging for continued dialogue, confirmed it would extend its suspension of retaliatory measures until early August in hopes of reaching a diplomatic resolution. However, Trump has made it clear that he does not intend to delay the August deadline.
New Tariffs on Other Global Economies
In the prior week, Trump’s administration also announced new rounds of tariffs targeting other major economies:
25% tariffs on imports from Japan and South Korea
50% tariffs on Brazilian goods, including copper
These aggressive moves have raised fears of a broader economic disruption, prompting investors to seek refuge in gold as a traditional safe-haven asset.
Geopolitical Tensions Add to Uncertainty
Investor anxiety has also been fueled by rising tensions between Russia and Ukraine, especially following reports that the U.S. may soon begin supplying Ukraine with offensive weapons to bolster its war effort. Trump recently voiced frustration with Russian President Vladimir Putin for what he described as an unwillingness to reach a ceasefire agreement.
Gold Rally Capped by Dollar Strength
Despite renewed interest in gold, its gains have been capped by a stronger U.S. dollar, as investors await critical U.S. inflation data scheduled for release on Tuesday. The Consumer Price Index (CPI) report for June is expected to offer insights into the Federal Reserve’s future monetary policy direction, with markets currently pricing in a potential interest rate cut of over 50 basis points by year-end.
Futures Market Data Reflects Growing Speculation
According to the Commodity Futures Trading Commission’s (CFTC) latest Commitment of Traders (COT) report for the week ending July 8:
Net long positions in gold increased by 3,054 contracts
Net short positions also rose by 2,066 contracts
This suggests ongoing speculative interest in gold amid intensifying geopolitical and trade-related uncertainty.
