Gold prices posted strong gains in Egypt over the past week, tracking a parallel rise in global markets, with prices climbing by around 1.9% amid escalating geopolitical tensions and political uncertainty, according to a report by iSagha.
Saied Embaby, CEO of iSagha, said local gold prices increased by approximately EGP 115 over the week. The price of 21-carat gold opened at EGP 6,040 per gram and closed at EGP 6,155.
Globally, gold prices surged by about $86 per ounce, rising from $4,510 at the start of the week to $4,596 by the close of trading.
Embaby noted that 24-carat gold was priced at around EGP 7,034 per gram, while 18-carat gold stood at approximately EGP 5,276 per gram. The gold pound rose to about EGP 49,240.
He added that gold prices have increased by around EGP 325 since the beginning of the year, representing a growth rate of 5.6%, compared with gains of 4.3% recorded during the same period last year. On global exchanges, gold prices have risen by about $278, or 6.4%, approaching the 6.6% increase recorded in January of the previous year.
Sharp volatility
Geopolitical tensions and internal political developments pushed gold prices to record levels during the week, with volatility returning strongly to precious metals markets. Gold opened the week at $4,510 per ounce and jumped sharply to $4,600 following reports of a potential lawsuit by the US Department of Justice against the Federal Reserve.
After a brief pullback to $4,582, renewed political pressure on the Federal Reserve drove prices higher again to $4,616, before retreating to $4,586 and then climbing to $4,630 per ounce. Gold traded sideways between $4,580 and $4,630 on Tuesday and Wednesday, before surging to a weekly high of $4,640 on Wednesday afternoon.
Prices later entered a phase of relative stability, fluctuating between $4,585 and $4,620. Friday’s session saw sharp swings, with gold failing once again to break above $4,620, falling to a weekly low of $4,536 before rebounding to nearly $4,600 by the end of the week.
Profit-taking and dollar pressure
Gold prices fell by more than 1% on Friday as investors took profits following the recent rally, while easing geopolitical tensions reduced the metal’s safe-haven appeal. The decline was also driven by stronger-than-expected US labour market data, which dampened expectations for near-term interest rate cuts by the Federal Reserve, amid a firmer dollar and higher Treasury yields.
Federal Reserve signals
Market sentiment turned more cautious following remarks by Donald Trump regarding Federal Reserve leadership, while easing geopolitical risks followed reports that Israel had sought to delay any potential strike on Iran.
US economic data continued to signal resilience, with industrial production rising by 0.4% in December, consumer inflation holding at 2.7%, firmer producer prices, and a strengthening labour market. Together, these factors reinforced expectations that the Federal Reserve will proceed cautiously on interest rate cuts, prompting traders to scale back easing bets.
Market outlook
Embaby said underlying fundamentals remain supportive of gold prices, citing concerns over the independence of the Federal Reserve, persistent trade tensions, and continued gold purchases by central banks.
He added that any US military escalation against Iran could push prices significantly higher, suggesting gold could surpass $4,700 per ounce within the current month.
Markets are now awaiting the Federal Reserve’s monetary policy decision scheduled for 27–28 January, alongside key US economic data releases, including housing indicators, jobless claims, the final GDP reading, the Personal Consumption Expenditures index, purchasing managers’ indices and consumer confidence figures, amid expectations of continued volatility in gold and precious metals markets.
