Gold prices plunge to largest monthly loss since 2008 as Fed rate hikes loom

Spot gold fell to about $3,985‑$4,011 per ounce, marking a 12 % drop for the month – the biggest monthly loss since the 2008 financial crisis. The decline continued on Tuesday, with spot prices down 1.5 % and August futures off 1.7 %, while silver, platinum and palladium also recorded quarterly and monthly losses. Analysts linked the slide to “high inflation, expectations of higher interest rates and a strong dollar,” quoted Edward Meir of Marix. The U.S. Federal Reserve is expected to raise rates three times this year, with a 64 % chance of a September hike.

Oil prices fell in tandem, with Brent crude trading around $72‑73 per barrel as investors awaited the outcome of U.S.–Iran talks in Doha and monitored tension in the Strait of Hormuz. The dollar index rose, while the Japanese yen and euro weakened.

In Egypt, the dollar remained stable at roughly 49.16 EGP per unit and the Saudi riyal at about 13.09 EGP, reflecting steady local currency markets amid the broader global shifts. The Central Bank of Egypt also issued 55 billion EGP of treasury bills following a recent rate cut.

Overall, the combined move in precious metals, oil and currency rates underscores market sensitivity to Fed policy expectations and geopolitical developments in the Middle East.