Gold prices rose in the local market and on the global exchange during Tuesday’s trading, driven by a return of demand—particularly from the Chinese market—according to a report issued by the iSagha platform.
Engineer Saeed Embabi, Executive Director of iSagha, said that gold prices in the local market increased by about EGP 275 during today’s trading, bringing the price of 21-karat gold to around EGP 6,725 per gram. Meanwhile, the global ounce price rose by about USD 292 to nearly USD 4,947.
The report noted that the price of 24-karat gold reached about EGP 7,686 per gram, 18-karat gold stood at around EGP 5,764, while the gold pound recorded approximately EGP 53,800.
Gold and silver prices have seen a notable rebound following the sharp and historic decline from their all-time highs, which has drawn investors and buyers back to the precious metals market at lower price levels.
Embabi explained that the local market should seize this opportunity and adjust pricing mechanisms in line with global movements.
He added that the local market did not show a real response to the sharp declines seen in global prices yesterday, considering that what is happening reflects clear manipulation in pricing, whether in gold or silver.
Embabi pointed out that just as the market reaps profits during periods of price increases, it must also bear losses during downturns, stressing the need for global movements to be reflected fairly and transparently in local prices—especially given the widening gap between local and global prices for a gram of gold, estimated at around EGP 200.
Precious metals had surged to record levels last month in a rapid rally that surprised even seasoned traders, as investors rushed into gold and silver amid rising geopolitical concerns, currency weakness, and growing anxiety over the independence of the U.S. Federal Reserve.
A broad wave of buying by Chinese speculators helped accelerate the rally, before partially reversing last Friday as the U.S. dollar recovered. Chinese investors’ behavior when prices dip remains a key factor in shaping market direction in the coming period.
Over the weekend, buyers flocked to the largest gold market in China, in the city of Shenzhen, to purchase jewelry and bullion ahead of the Lunar New Year holiday. Chinese markets are set to close for more than a week starting February 16.
In the same context, some global banks continue to bet on further gains in gold. Deutsche Bank said in a note issued Monday that it is maintaining its forecast for gold prices to reach USD 6,000 per ounce.
Gold prices rose by more than 5% during Tuesday’s trading, as buyers returned to the market after the sharp correction seen last week from record levels near USD 5,600 per ounce.
The report explained that this decline was primarily technical in nature, driven by position liquidations and margin-related selling, rather than a fundamental deterioration in the underlying drivers supporting the market.
The fundamental pillars supporting gold remain in place, while the rebound highlights continued high volatility in the precious metals market, alongside an increase of about 8.5% in silver prices during today’s session.
Nevertheless, gold may enter a period of relative stability in the near term amid a lack of new catalysts, coupled with signs of easing geopolitical tensions—particularly between the United States and Iran—which could reduce safe-haven demand. At the same time, a renewed strengthening of the U.S. dollar may limit further upside.
These developments follow remarks by Iranian President Masoud Pezeshkian, who said he had instructed his foreign minister to pursue “fair and equitable negotiations” with the United States. Reports indicate that both sides are preparing to send senior envoys to Istanbul later this week for talks on Iran’s nuclear program, following statements by U.S. President Donald Trump that Iran is “holding serious talks.”
On the trade front, U.S. President Donald Trump announced on Monday that the United States and India had reached a trade agreement under which U.S. tariffs on Indian goods would be reduced from around 50% to approximately 18%, while India would increase its purchases of U.S. products, with commitments that could reach USD 500 billion.
Regarding economic data, momentum in U.S. releases weakened after the Bureau of Labor Statistics announced a delay in publishing the January jobs report, originally scheduled for Friday, due to the partial government shutdown, along with the postponement of the Job Openings and Labor Turnover Survey (JOLTS).
The U.S. dollar index, which measures the dollar’s performance against a basket of six major currencies, is trading near a one-week high at around 97.60 points, recovering from a four-year low reached last week.
This rebound in the dollar came after markets welcomed U.S. President Donald Trump’s nomination of former Federal Reserve Governor Kevin Warsh as Chairman of the Federal Reserve, which helped ease concerns about the risk of sharp interest-rate cuts under political pressure.
Positive data from the U.S. manufacturing sector also reinforced expectations that the Federal Reserve can afford to remain patient before resuming monetary easing. The Institute for Supply Management (ISM) manufacturing PMI jumped to 52.6 in January from 47.9 in December, beating market expectations, while the S&P Global manufacturing PMI edged up to 52.4 from 51.9.
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