Geopolitical Tensions, Interest Rate Bets Push Gold Higher Again

Gold prices rose slightly in local markets during trading on Tuesday, with the ounce rising on the global stock exchange, supported by a weaker dollar, rising demand, and growing bets on interest rate cuts amid escalating geopolitical tensions between the United States and China.

Gold prices rose by about EGP 10 in local markets during today's trading compared to yesterday's closing price. The price of a gram of 21-karat gold reached EGP 4,390, while an ounce rose by about $34, reaching $3,016.

Mbappe added that a gram of 24-karat gold reached EGP 5,017, a gram of 18-karat gold reached EGP 3,763, while a gram of 14-karat gold reached EGP 2,927, and the gold pound reached EGP 35,120. According to the daily report of the "iSaaga" platform, gold prices in local markets rose by about EGP 30 during trading yesterday, Monday. The price of a gram of 21-karat gold opened at EGP 4,350 and closed at EGP 4,380. Meanwhile, the price of an ounce on the global stock exchange fell by $56, opening at $3,038 and closing at $2,982.

Gold prices in local markets have witnessed increases in recent days despite the wave of declines experienced by the global stock exchange, due to the decline of the Egyptian pound against the dollar to its lowest levels ever.

Investment demand in local markets is slowing due to rising prices and declining purchasing power, with demand limited to those seeking marriage.

Gold prices rose on the global stock exchange following a wave of decline yesterday, supported by rising demand and growing bets on a US interest rate cut, amid growing geopolitical tensions and signs of war between the United States and China. US President Donald Trump's threats to impose an additional 50% tariff on Chinese imports yesterday, and Beijing's response with a readiness to fight, increased market uncertainty and increased turmoil, prompting investors to hedge against gold.

He pointed out that rising investor bets on the US Federal Reserve cutting interest rates by up to five times by 2025 strengthened gold and continued its record-breaking rally.

European stocks recovered from their worst three-day loss in five years, while US stock index futures pointed to gains on Wall Street after Monday's sharp volatility. US Treasury bonds rose after a sharp sell-off, oil prices rose, and gold rose for the first time in four days. The US dollar fell against major currencies, according to Bloomberg.

The tariffs announced by US President Donald Trump destabilized global trade amid fears of a global economic recession. Global stock markets collapsed, pushing investors to gold for liquidity, halting gold's rally. Federal Reserve Governor Adriana Kogler affirmed the 2% inflation target, while Chicago Federal Reserve Bank President Austin Goolsbee warned that continued trade tensions could reignite inflation, complicating the justification for monetary easing. Meanwhile, markets are awaiting the minutes of the March Federal Open Market Committee meeting on Wednesday, the US Consumer Price Index on Thursday, and the US Producer Price Index on Friday to determine the Fed's monetary policy direction for the coming period.