Global gold prices witnessed a notable decline during Friday’s trading sessions, following a week of aggressive and consecutive gains that propelled the precious metal to unprecedented historic levels.
Despite the price per ounce dropping by approximately $250 from the peak recorded on Thursday, analysts observe that this retreat remains modest when measured against the substantial gains accumulated since the beginning of the year. This supports the prevailing market view that the current dip is merely a natural correction within a broader bullish trajectory.
According to global trading platform data, gold had surged toward the $5,550 mark, bolstered by a weakening U.S. Dollar, escalating geopolitical tensions, and persistent global economic uncertainty. However, a wave of profit-takingduring the early hours of Friday’s dealings triggered the current downward movement.
Why is gold retreating now?
Financial market analysts suggest the recent dip is a logical consequence of an exceptionally rapid rally. Gold prices have surged by over 27% since the start of 2026, building upon the record gains achieved throughout the previous year.
Experts point out that technical indicators—most notably the Relative Strength Index (RSI)—had reached extreme overbought territory. This prompted investors to trim their positions and lock in profits. However, this shift does not signal a reversal in the overall trend.
Temporary pressure has also been exacerbated by shifts in U.S. monetary policy expectations; as the Federal Reserve potentially delays interest rate cuts, gold’s short-term performance has reacted to its characteristic sensitivity toward interest rates and the U.S. Dollar.
Gold maintains historic heights
Despite the retreat, specialists emphasize that gold continues to trade near historic peaks. The $250 decline per ounce is viewed as a minor correction rather than a sharp crash when compared to the hundreds of dollars in value gained over recent weeks. Analysts argue that the market required this “cooling-off” period to ensure the sustainability of its long-term upward trajectory.
Fundamental drivers remain strong
International reports confirm that robust demand from central banks—particularly in China, Russia, and India—remains a primary driver of gold prices. Coupled with mounting global debt concerns, investors continue to turn to gold as a primary hedging tool against market volatility.
Prices adjust amid global retraction
The global downturn in gold prices resonated across the Egyptian domestic market on Friday, with expectations of a moderate decline in retail prices at local jewelers as trading commenced.
Based on market estimates—and assuming the U.S. Dollar remains stable at approximately LE 47—the 21-karat gold grade, the nation’s most traded benchmark, saw a relative retreat to nearly LE 7,150 EGP per gram. Meanwhile, the 24-karat grade reached approximately LE 8,200 EGP, with the 18-karat grade trading near 6,136 EGP.
Local traders emphasized that current prices remain at historic highs compared to levels seen in previous months. They noted a prevailing sense of “cautious anticipation” and relative calm in the market, though demand remains steady from savers who view gold as a premier vehicle for preserving intrinsic value amidst inflation and exchange rate fluctuations.
Will the correction persist?
Analysis from international financial institutions suggests that the current retreat may extend briefly as part of a technical correction, potentially ranging between 5 percent and 10 percent.
Crucially, this is not expected to break the underlying long-term bullish sentiment. Projections indicate that gold prices are likely to remain sustained above the $5,000 per ouncethreshold, supported by robust medium- and long-term fundamentals.
Experts maintain that discussions of a “sharp crash” or a “total trend reversal” are premature, asserting that the current dip is a healthy market stabilization following a period of rapid, aggressive appreciation.
Strategic outlook: Buy or sell?
Global analysts continue to advocate for holding gold as a long-term strategic investment, viewing these minor pullbacks as incremental buying opportunities rather than exit signals. Domestically, market participants suggest that the decision to sell should be dictated by a need for liquidity or the realization of gains following long holding periods.
Conversely, purchasing remains a sound strategy for those with surplus capital seeking a hedge against volatility and a reliable store of wealth.
