The gold and jewelry trading platform “iSagha” reported the continued upward momentum in gold prices both locally and globally. Prices in the Egyptian market rose by 3.5% during the past week, while the ounce gained 3.4% on global exchanges — marking the eighth consecutive weekly gain amid strong investment flows and growing expectations of a continued cycle of U.S. interest rate cuts in the coming period.
According to Saeed Embabi, CEO of iSagha, gold prices in the local market rose by EGP 180 over the week. The 21-karat gram opened trading at EGP 5,220, climbed to a record high of EGP 5,450, and closed the week at EGP 5,400.
Globally, the ounce rose by $131, opening at $3,886, touching an all-time high of $4,060, and closing at $4,017 by the end of the week.
Embabi added that the 24-karat gold recorded around EGP 6,171, 18-karat reached EGP 4,629, and 14-karat stood at EGP 3,600, while the gold pound coin stabilized at EGP 43,200.
The report highlighted that local gold prices have increased by EGP 1,660 — or 44.4% — since the beginning of January, as the 21-karat gram started the year at EGP 3,740. Meanwhile, the global ounce has gained $1,393, or 53%, over the same period, reflecting the strength of the broader uptrend in both local and global markets.
Dollar Surge May Trigger Further Local Gold Gains
The report also noted that the U.S. dollar exchange rate in Egypt saw a notable rise on Sunday, surpassing EGP 48 — an increase of about 51 piasters.
Embabi explained that the dollar’s appreciation will directly impact gold prices at the start of Monday’s trading, forecasting a new price increase. He added that every 10-piaster move in the exchange rate typically translates into a 9–11 EGP rise in the price of one gram of gold, in line with global market movements.
Sustained Global Momentum
Globally, gold continued its record-breaking rally, surpassing $4,000 per ounce for the first time in history and notching its eighth consecutive weekly gain, supported by robust demand from investors and ETFs.
The week opened at $3,886 per ounce, with the metal quickly forming higher highs and lows, reaching $3,962. As Asian markets opened, gold broke through the $4,000 barrier late Tuesday, climbing to $4,050 on Wednesday morning and touching $4,060 at the peak of trading.
Toward the end of the week, prices corrected slightly to $3,950 per ounce, before regaining balance and closing above $4,000 on Friday — a sign of strong underlying demand and bullish sentiment.
This came after a brief profit-taking phase following the Gaza truce agreement, before gold rebounded on the back of renewed U.S.–China trade tensions, the ongoing U.S. government shutdown, and expectations of further monetary easing by the Federal Reserve — all of which reinforced the metal’s role as a safe-haven asset amid global uncertainty.
Geopolitical Tensions Reinforce Gold’s Appeal
Heightened political and trade frictions have continued to support the latest rally, as U.S. tariff threats on China and Washington’s prolonged political gridlock reignited global risk aversion.
Market anxiety deepened after President Donald Trump warned of new tariffs on Chinese imports, while Beijing threatened to restrict exports of rare earth metals. Trump also said he saw “no reason” to meet Chinese President Xi Jinping in South Korea as previously planned.
Meanwhile, the U.S. government shutdown stretched into its tenth consecutive day with no resolution in sight, eroding investor confidence and driving renewed demand for gold.
On the macroeconomic front, data from the University of Michigan showed that U.S. consumer sentiment remained stable in October despite the partial shutdown, while investors await September’s Consumer Price Index (CPI) data due Friday — a key gauge for inflation and the Fed’s next policy move.
European and Asian Political Turmoil Boosts Safe-Haven Demand
Political instability in France and Japan has further enhanced gold’s appeal.
In France, Reuters reported that President Emmanuel Macron refused to appoint a left-wing prime minister despite mounting pressure, sparking opposition calls for early parliamentary elections or resignation.
In Japan, uncertainty looms over Sanae Takaichi’s bid to become the country’s first female prime minister, following the collapse of the decades-long alliance between the Liberal Democratic Party and Komeito amid a political funding scandal. Parliamentary elections are expected in the second half of October.
U.S. Market Indicators
The U.S. Dollar Index fell 0.43% to 98.97, while the 10-year Treasury yield dropped nine basis points to 4.048%. Real yields, which move inversely to gold prices, also declined by 9.5 basis points to 1.708%.
Alberto Musalem, President of the St. Louis Federal Reserve, noted that the Fed’s objectives are on a “tense trajectory,” citing persistent inflation and emerging signs of labor market weakness. He added that monetary policy currently lies between restrictive and neutral, with overall financial conditions remaining relatively loose.
Strong Outlook Ahead
Goldman Sachs raised its 2026 gold price forecast from $4,300 to $4,900 per ounce, citing strong inflows into gold-backed ETFs and continued central bank purchases, emphasizing that the risks remain skewed to the upside.
Market data suggests a 94% probability that the Federal Reserve will cut interest rates by 25 basis points at its next meeting on October 29, according to Prime Market Terminal’s rate-probability model.
Record ETF Inflows
The World Gold Council (WGC) reported record inflows into gold-backed ETFs during the third quarter, with September alone accounting for over 60% of the quarter’s activity.
In total, 145.6 tons of gold worth more than $17.3 billion flowed into ETFs last month, while total holdings increased by 221.7 tons (approximately $26 billion) over the quarter.
The WGC noted that soaring gold prices pushed assets under management (AUM) to all-time highs, though physical holdings remain below their November 2020 peak by less than 2%.
In a separate report, the Council cautioned that the strong investment demand — which pushed prices to record levels last month — has driven the market into overbought territory, yet emphasized that solid fundamentals continue to underpin gold prices through the end of the year.
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