Global Markets Open with Strong Gold Buying Momentum

Economic analyst Ahmed Fahim said that global markets began this week’s trading with remarkable momentum in gold buying, as European markets woke up to a strong wave of demand that pushed the yellow metal to a new record high of $3,630 per ounce. This reflects the growing appetite for gold as a safe haven amid the uncertainty overshadowing the global economic outlook.

Surprise Move by the Central Bank of Egypt

Fahim noted that the standout local development came from the Central Bank of Egypt, which surprised markets by pushing the U.S. dollar down by around 48.25 piastres—more than 40 piastres since the beginning of the week.

He stressed that this decline represents a significant turning point in the foreign currency’s trajectory, especially since the dollar had recently reached peak levels not seen in months.

According to Fahim, the Egyptian pound now appears in a position to test the 48 EGP level, with the potential for a corrective move toward 47 EGP if stability can be maintained at these levels. Such a move could pave the way for a new phase of balance in the currency market.

Stagnation in the Local Gold Market

On domestic gold prices, Fahim confirmed that the situation is quite different from the global stage. Prices remain confined within a narrow range of 4,840 to 4,860 EGP per gram of 21-carat gold, due to an ongoing liquidity crunch among local gold traders. This shortage prevents the international rally from fully reflecting in Egypt’s local market.

He added that retail traders face significant challenges in securing liquidity, which restricts trading volumes and keeps the market stagnant, despite the consecutive international gains.

Eyes on U.S. Markets

Fahim continued that attention now turns to U.S. markets, which will open in the coming hours and play a decisive role in setting gold’s next direction. If investors there continue buying with the same momentum, gold’s rally could persist and possibly hit new record highs. However, any surprises in U.S. trading could shift the global pricing trajectory.

Reading the Economic Landscape

Fahim observed that the current scene reflects a divergence between global dynamism and local stagnation. While gold is advancing internationally on expectations of U.S. rate cuts and heightened geopolitical tensions, the domestic market remains constrained by internal factors, chiefly liquidity shortages and exchange rate volatility.

He concluded that the coming period will be particularly sensitive, as any policy changes from the Federal Reserve or fresh moves by the Central Bank of Egypt may shape gold prices both locally and globally for the remainder of the year.