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Gold prices drop after US Fed holds rates

Businessmen Team stock_market 31 July 2025 09:09 PM
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Gold prices drop after US Fed holds rates

Gold prices in the Egyptian market experienced a noticeable decline Thursday, influenced by global developments, notably the US Federal Reserve's decision to keep interest rates unchanged.

Twenty-one-karat gold, the most widely traded in the local market, recorded approximately 4,500 EGP/gram, a decrease of about 15 pounds from Wednesday's prices.

Current gold prices in Egypt:

24-karat gold: 5,142 EGP

21-karat gold: 4,500 EGP

18-karat gold: 3,857 EGP  

Gold pound (8 grams of 21-karat): 36,000 EGP

The decline comes as the US central bank maintains its monetary policy. The Federal Reserve Board announced Wednesday evening its decision to keep the benchmark interest rate between 4.25 percent and 4.50 percent. This marks the fifth consecutive meeting since the start of 2025 that rates have remained unchanged, despite increasing pressure from US President Donald Trump to cut rates to stimulate the economy.

Despite the pressure, Fed Chair Jerome Powell maintained his cautious stance on monetary policy, emphasizing that inflation still requires prudence in making any decisions regarding monetary easing.

Global and local gold prices are influenced by several factors, including US monetary policy trends, dollar fluctuations, and domestic supply and demand levels.