Gold Prices Drop to Seven‑Month Low Amid Strong Dollar

Spot gold fell 0.2 % on Thursday to $3,993.33 per ounce, sliding below the $4,000 level for the first time since November 2025. The decline follows a continued rise in the U.S. dollar and heightened expectations that the Federal Reserve will deliver three interest‑rate hikes this year, with a 67 % probability of an increase at the September meeting, according to CME FedWatch.

Other precious metals also slipped: silver dropped 0.1 % to $57.37 per ounce, platinum fell 0.8 % to $1,566.25 per ounce, while palladium edged up 0.4 % to $1,171.25 but remains near nine‑month lows. Analysts linked the downward pressure to higher U.S. inflation, the ongoing conflict in the Middle East, and the dollar’s 13‑month strength, which makes gold costlier for buyers using other currencies.

In regional markets, Egypt reported local gold prices around 5,650 Egyptian pounds per gram for 21‑karat gold and 4,842 pounds per gram for 18‑karat gold, reflecting similar downward trends. The price of an 8‑gram gold kilogram in Egyptian jewelry shops was about 45,200 pounds. These local figures echo the broader global move as investors reassess gold’s appeal as an inflation hedge amid rising rates.