Egypt Gold Plummets 4.4% as Global Spot Tumbles to $4,068 Amid US Inflation Shock
The domestic gold market suffered a steep 4.4% decline at the close of Wednesday’s trading session, mirroring a 4.5% drop in global spot prices. According to a newly released report by the Gold Observatory, the massive sell-off was triggered by hot US inflation data, which pushed the US Dollar and Treasury yields higher, solidifying expectations of a prolonged hawkish monetary policy by the Federal Reserve.
Price Breakdown and Market Metrics Dr. Walid Farouk, Director of the Gold Observatory for Economic Studies, stated that the benchmark 21 Karat gold plunged by 280 EGP in a single day compared to Tuesday's close, settling at 6,070 EGP per gram. Globally, spot gold plummeted by $191, dropping to $4,068 per ounce.
To provide a clear overview for investors, below are the closing market rates for Wednesday:
Asset / KaratWednesday Closing RateSingle-Day ChangeYTD Performance Overview
24 Karat Gold6,937 EGP / gTraded DownPeak gains heavily erased since Jan
21 Karat Gold6,070 EGP / g-280 EGPYTD gains compressed to +240 EGP/g
18 Karat Gold5,203 EGP / gTraded DownReflects broader local sell-off
Gold Coin (8g)48,560 EGPTraded DownTracking bullion contraction
Global Spot Gold$4,068 / oz-$191Down roughly $250 since Jan 2026
The Domestic-Global Spread Narrows The report highlighted that the price gap (spread) between local and global market pricing narrowed to 153 EGP per gram. This compression indicates a significant reduction in market volatility compared to the first quarter of the year, when sharp fluctuations pushed the spread past 300 EGP per gram. The narrowing gap demonstrates that local bullion merchants are adopting a highly cautious approach to pricing their current inventories.
Macroeconomic Catalysts The global drop was driven by the US Consumer Price Index (CPI) for May, which ticked up to a three-year high of 4.2% annually, fueled by soaring energy costs. Core inflation landed at 2.9%.
This data sent the 10-year US Treasury yield climbing to 4.536%, drawing capital away from non-yielding gold. This yield surge completely offset the traditional safe-haven demand that usually follows geopolitical escalations, such as the ongoing military exchanges between the US and Iran.
Meanwhile, institutional sentiment weakened further as gold-backed ETFs recorded an 88-ton reduction in holdings year-to-date, bringing total global assets to 3,048 tons. In parallel, the Bank of Canada maintained its benchmark interest rate at 2.25% for the fifth consecutive time, highlighting global central bank vigilance against sticky inflation.