Gold prices in Egypt’s local market rose by around EGP 580, or 9.4%, during last week’s trading, driven by a sharp rally in global bullion prices, which climbed by about $392, or 8.5%—the strongest weekly gain in nearly six years. The surge came amid rising demand, escalating geopolitical tensions, and heightened political uncertainty worldwide, according to a report by iSagha, the online gold and jewellery trading platform.
Saeed Embabi, CEO of iSagha, said gold opened the week at EGP 6,155 per gram and closed at EGP 6,735, while the global ounce price jumped from $4,596 to $4,988.
He added that 24-carat gold ended the week at EGP 7,697 per gram, while 18-carat gold reached EGP 5,773 per gram. The price of the gold pound climbed to around EGP 53,880.
Embabi noted that gold prices have risen by EGP 905 since the beginning of the year, representing a growth rate of 15.5%, broadly in line with gains in global bullion prices, which have increased by more than $670 year-to-date.
He said the local market is facing a severe shortage of gold and silver bullion due to a sharp increase in demand, particularly amid the continued suspension of imports for companies. As a result, the market is now largely dependent on resale operations, which have increasingly been directed towards exports in recent months, leading to a noticeable decline in domestic supply.
This shortage has forced manufacturers to rely on traders’ gold stocks, extending delivery periods to as long as two weeks, Embabi said.
He advised consumers to consider gold jewellery not only for adornment but also as a savings instrument, which could help ease pressure on bullion supplies. He also stressed the importance of choosing jewellery with reasonable workmanship costs that could be offset by potential price gains in the coming period.
Embabi attributed the sharp rise in local gold prices primarily to the surge in global prices, alongside relative stability in the local US dollar exchange rate and stronger domestic demand. These factors have contributed to widening the gap between local and global prices to around EGP 146.
Globally, gold posted strong gains last week as investors flocked to safe-haven assets amid persistent geopolitical and economic uncertainty, as well as weakness in the US dollar.
Analysts say US President Donald Trump’s trade policies, particularly his repeated use of tariffs as a political pressure tool, have undermined investor confidence in US assets, raising concerns over the dollar and boosting demand for gold.
Although tensions eased somewhat midweek after Trump announced he would step back from earlier threats to impose tariffs on European countries following the outline of a future framework agreement on Greenland, the lack of binding details limited the impact on gold prices.
Investors remain cautious, with doubts over the ability to fully contain global tensions keeping demand for the precious metal elevated.
On the monetary policy front, recent economic data have reinforced expectations that interest rates will remain unchanged at the US Federal Reserve’s meeting on 27–28 January, with the current policy stance likely to continue throughout the first quarter.
Trump also announced the conclusion of interviews to select the next Federal Reserve Chair, with a decision expected before the end of January. Concerns persist that a new appointment could pave the way for a more accommodative monetary policy, given Trump’s repeated criticism of current Chair Jerome Powell over the pace of rate cuts.
Meanwhile, data from the University of Michigan’s January survey showed improved consumer sentiment, with the Consumer Expectations Index rising to 57 from 55, while the Consumer Sentiment Index increased to 56.4 from 54.
One-year inflation expectations declined to 4% from 4.2%, while five-year expectations eased to 3.3% from 3.4%. Core personal consumption expenditures inflation remained steady at 2.9%, while initial jobless claims rose to 200,000.
The precious metals sector continues to show strong momentum at the start of the year, with silver prices surpassing $100 per ounce and gold approaching the $5,000 mark. Despite some signs of overbought conditions, analysts maintain that the rally is supported by solid fundamentals.
As gold nears the $5,000 per ounce threshold, Bank of America has raised its short-term price target to $6,000, making it the most bullish among major financial institutions.
Global markets are now awaiting a series of key economic indicators in the coming week, including US durable goods data, consumer confidence figures, weekly jobless claims, and the producer price index.
Investor attention will also focus on monetary policy decisions by the Bank of Canada and the US Federal Reserve, given their direct impact on the US dollar and precious metals prices, particularly gold.
