Gold prices in local markets witnessed a marginal increase of 0.1% during last week’s trading, despite a 1.6% rise in the global ounce price, supported by signs of easing tensions in the Middle East, according to the weekly report issued by the "Marsad al-Dhahab" for Economic Studies.
Dr. Walid Farouk, a researcher in gold and jewelry affairs and director of "Marsad al-Dhahab," stated that gold prices in the local market rose by about EGP 10 during the week, as the 21-karat gold gram opened trading at the level of EGP 7,150, touched EGP 7,250, before concluding transactions at EGP 7,160.
The 24-karat gold gram recorded about EGP 8,183, and the 18-karat gram recorded about EGP 6,137, while the price of the gold coin reached about EGP 57,280.
He pointed out the continued divergence between the local and global markets, as the price gap is estimated at about EGP 60 in favor of lower prices locally, in light of weak demand.
On the global level, the ounce rose by about $74 during the week, opening transactions at $4,676 and exceeding the $4,800 level, before concluding the week at $4,750.
Gold prices had declined during last March by 3%, with a value of EGP 235 locally, while the global ounce dropped by about $611, at a rate of 11.5%.
Silver
The report indicated a 1.5% decline in silver prices in local markets during the week, with a value of EGP 2, as the 999-grade silver gram opened trading at EGP 135 and closed at EGP 133.
The 925-karat silver gram recorded about EGP 123, and the 800-karat gram recorded about EGP 107, while the price of the silver coin reached about EGP 984.
On the global level, the silver ounce rose by 4%, with a value of $3, opening transactions at $73 and concluding at $76.
Silver had recorded a sharp decline during March, falling locally by 19.7% and by about EGP 34, while it declined globally by 20% and by about $18.8.
Silver witnessed sharp fluctuations since the beginning of 2026, recording its highest level at $121.62 per ounce on January 29, before falling to $64 on February 6, in one of the fastest correction waves in the market.
Reasons for the Divergence Between Local and Global
The Director of "Marsad al-Dhahab" explained that the limited increases in local gold prices, despite the rise of the global ounce, are due to the improvement of the pound's value against the dollar by about EGP 1.5 since the announcement of the truce between the United States and Iran mid-week, in addition to the decline in local demand and the tendency of some dealers to export, which limited the transmission of the global rise to the local market.
He added that these factors contributed to the continued trading of gold below the global price, in light of weak purchasing power and the state of anticipation dominating the market.
In contrast, he pointed out that silver prices in the local market are still higher than the global price by about EGP 3, despite the decline of the dollar, as the fair price for a 999-grade silver gram is estimated at EGP 130.
He explained that this relative rise in silver is due to the market's tendency to limit declines, especially after the sharp drop at the end of last January, when the gram price reached about EGP 210, which caused great losses to traders and consumers.
He stressed that this behavior reflects the highly volatile nature of the silver market, despite expectations for the upward trend to continue, with the possibility of the ounce price exceeding the level of $135 during the coming period.
Exchange Rate is the Most Influential Factor
He pointed out that the dollar exchange rate against the pound witnessed sharp fluctuations since the outbreak of tensions between the United States and Iran at the end of February, as it jumped by about EGP 7 before declining by about EGP 1.5 following the announcement of the truce, to record about EGP 53.20 by the end of the week.
He stressed that the exchange rate is the most influential factor in determining gold and silver prices locally, along with the global price and supply and demand.
He explained that every increase of about $10 in the global ounce price is reflected by an increase estimated at only about EGP 6 in the local market, while a movement of the dollar price by one pound could push gold prices to rise by more than EGP 100, reflecting the local market's extreme sensitivity to currency movements.
The Global Scene
Gold prices witnessed sharp fluctuations during the past week as the impact of geopolitical tension developments related to Iran continued, as gold opened its trading at $4,676 per ounce, then quickly declined to the level of $4,600, before rising again gradually to above $4,700 with improved demand, but it returned to decline to $4,626.
In the middle of the week, the announcement of a temporary two-week truce pushed prices to rise strongly from $4,662 to a peak of $4,835, before these levels faced resistance, pushing gold to fall again towards $4,700.
By the end of the week, the precious metal settled within a horizontal range between $4,700 and $4,800 per ounce, in light of market anticipation and the likelihood of continued fluctuation with attempts to build a new price base.
Gold prices continued their movements, supported by a relative receding of geopolitical tensions, amid signs of a potential de-escalation between the United States and Iran, which boosted demand for gold as a safe haven.
On the other hand, gold faces pressure from rising US Treasury yields, along with market anticipation of the path of interest rates and inflation.
US Consumer Price Index data showed an increase of 0.9% during March, compared to 0.3% in February, with annual inflation stabilizing at 3.3%, while core inflation recorded 0.2% monthly and 2.6% annually.
Market estimates indicate a decline in the chances of cutting interest rates in the near term, which may limit gold's gains, at a time when central bank purchases remain a major support factor for prices.
In the coming week, US markets await housing data, the Producer Price Index (PPI), and jobs data, in addition to an expected speech from the Federal Reserve, while dealers monitor the developments of US-Iranian talks in Pakistan and the reopening of the Strait of Hormuz.
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