Gold prices in Egypt posted strong gains over the past week, tracking a parallel rise in global markets, climbing by around 1.9% amid escalating geopolitical tensions and political uncertainty, according to a report by iSagha. Local prices increased by approximately EGP 115 over the week, with 21-carat gold closing at EGP 6,155 per gram.
Gold prices opened the week at $4,510 per ounce globally, then jumped sharply to $4,600 following reports of a potential US Department of Justice lawsuit against the Federal Reserve. It pulled back briefly to $4,582 before renewed political pressure drove it higher to $4,616, then retreated to $4,586 and climbed to $4,630. Trading moved 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 relative stability, fluctuating between $4,585 and $4,620. Friday's session saw sharp swings, with gold failing to break above $4,620, falling to a weekly low of $4,536 before rebounding to nearly $4,600 by week's end. Prices fell more than 1% on Friday as investors took profits after 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 Federal Reserve interest rate cuts, amid a firmer dollar and higher Treasury yields.
Market sentiment turned cautious after remarks by Donald Trump on Federal Reserve leadership, while geopolitical risks eased following reports that Israel sought to delay any potential strike on Iran. US economic data showed resilience, with industrial production up 0.4% in December, consumer inflation steady at 2.7%, firmer producer prices, and a strengthening labour market, reinforcing expectations of a cautious Fed on rate cuts.
Saied Embaby, CEO of iSagha, said underlying fundamentals remain supportive of gold prices, citing concerns over Federal Reserve independence, persistent trade tensions, and continued central bank gold purchases. He added that any US military escalation against Iran could push prices above $4,700 per ounce this month. Markets await the Federal Reserve's policy decision on January 27-28, alongside key US data releases.
