Expert: Sharp Volatility Hits Global and Local Gold Markets, Direction Hinges on Dollar and Monetary Policy

Emad Saad, a gold market expert, said that gold markets—both globally and locally—are currently experiencing a phase of sharp volatility, driven by the overlap of economic factors and geopolitical developments, with direct repercussions on supply and demand dynamics.

He explained that the precious metal is moving in successive waves of gains followed by temporary price corrections, a pattern that is quickly reflected in the Egyptian market due to its close linkage to global exchanges and the U.S. dollar exchange rate.

Saad noted that gold prices posted notable gains at the beginning of the week, supported by increased demand for safe-haven assets amid mounting economic concerns and geopolitical tensions. However, these gains later came under pressure as gold retreated from its highest levels in three weeks, weighed down by a stronger dollar, which pushed the metal into a limited downward correction in the spot market.

He added that the current volatility reflects a clear tug-of-war between investors seeking gold as a safe haven on one hand, and the strength of the U.S. dollar and influential economic data on the other, in addition to ongoing uncertainty regarding the direction of major central banks’ monetary policies—factors that continue to intensify market fluctuations.

On the domestic front, Saad pointed out that trading on Monday, February 23, 2026, witnessed a slight decline, with the price of 21-karat gold—the most widely traded in Egypt—falling by around EGP 20 compared to the previous day. This highlights the sensitivity of the Egyptian market to global price movements, as well as its direct exposure to changes in the pound–dollar exchange rate.

He explained that the limited decline was mainly due to a wait-and-see approach among traders, coupled with fluctuations in global economic indicators and a relative slowdown in local demand following the recent price rally, prompting some consumers and investors to postpone purchasing or investment decisions.

Saad further clarified that the drivers behind gold’s upward movement include rising global demand for safe-haven assets amid economic uncertainty, slower global growth, and continued tensions among major powers—all of which help sustain investor interest in the yellow metal.

Conversely, he attributed recent price pullbacks to the temporary rise in the U.S. dollar index, which reduces the appeal of dollar-denominated gold, in addition to natural profit-taking following strong upward rallies.

Regarding market activity, Saad noted increased buying and selling during periods of rising prices, as some traders sought to capitalize on higher price levels, while demand eased relatively during correction phases as market participants awaited clearer signals on the overall trend.

He concluded by emphasizing that gold markets remain in a state of elevated volatility, while the metal continues to maintain its appeal as a hedge during times of economic uncertainty. He stressed that price movements in the coming period will largely depend on global monetary policy decisions, dollar performance, and geopolitical developments.