Gold prices are heading toward their largest quarterly drop since April 2013, shedding approximately 14% in the second quarter of 2026.
This decline marks a significant correction following five consecutive quarters of gains, as the precious metal retreats from its recent peaks due to a resurgent US dollar and expectations of tighter monetary policy from the Federal Reserve.
Market analysis from Gold Billion highlights that the global decline is heavily influenced by a 64% probability of further interest rate hikes in September.
As the US dollar strengthens and geopolitical risk premiums fade, gold—a non-yielding asset—faces sustained downward pressure.
Gold prices are currently hovering near the critical $4,000 support level, with investors closely watching upcoming US labor market data for further direction.
In the Egyptian market, local prices have mirrored this downward trend for the fourth consecutive month.
The convergence of a stabilized local currency, increased foreign inflows into debt instruments, and higher yields on domestic savings certificates has dampened local demand for gold.
As Egypt’s economic indicators show resilience, domestic investors are increasingly adopting a wait-and-see approach, awaiting clearer signals from both global markets and local monetary developments.
