Gold Prices Plunge as September Rate Cut Hopes Fade
Cairo, Egypt – November 15, 2025 – Gold prices experienced a notable decline today, falling to $4,050 after previously trading between $4,200 and $4,050. The downturn follows diminishing expectations for a US Federal Reserve interest rate cut in September, impacting investor sentiment.
the price adjustment arrives amid broader economic uncertainty, affecting both individual investors and the Egyptian market. Gold serves as a customary hedge against inflation and economic instability, and fluctuations in its price directly influence investment portfolios and the local jewelry industry. The current shift reflects a complex interplay of factors, including dollar strength and evolving monetary policy signals from the US central bank.
In Egypt, the impact is instantly visible in local markets. As of today, 24-karat gold is trading at 6,240 Egyptian pounds, while 21-karat gold is available for 5,460 pounds. An 18-karat piece costs 4,680 pounds, and the gold pound is valued at 43,680 pounds.
Despite the recent gold price dip, the dollar index-measuring the dollar’s performance against a basket of major currencies-is projected to decline for the second consecutive week. This weakening dollar typically increases gold’s appeal to investors holding other currencies.
Gold demonstrated strong performance earlier this week, largely driven by dollar weakness and growing anticipation of potential Federal Reserve rate cuts prompted by recent data indicating a softening employment sector. These expectations initially exerted downward pressure on the dollar and upward pressure on gold.
Though,concerns persist within the Federal Reserve regarding inflationary pressures and indications of continued stability in the US labor market. Following two interest rate reductions earlier in the year, members are exhibiting caution about further cuts, particularly at the upcoming December meeting.
Traders currently assign a 51% probability to a quarter-point rate cut next month,a decrease from 64% in the previous session. This shift in expectations is a primary driver of the current gold price correction.
The recent reopening of the US government after a 43-day shutdown, which disrupted the flow of economic data, is expected to restore the regular issuance of official economic reports in the coming weeks, potentially providing further clarity on the economic outlook and influencing future monetary policy decisions.
