Gold prices rose in local and global markets during trading on Monday, after the ounce touched an all-time high of $4,690, driven by increasing geopolitical uncertainty and U.S. President Donald Trump’s threat to impose tariffs on eight European countries that opposed his plan to annex Greenland, according to a report by the I Sagha platform.
Saeed Embabi, the platform’s CEO, stated that gold prices in the local market increased by about EGP 85 during Monday’s trading, with the 21-carat gold gram reaching EGP 6,240, while the ounce rose to $4,665 after briefly approaching $4,690.
Embabi added that the 24-carat gold gram recorded around EGP 7,132, the 18-carat gold gram reached approximately EGP 5,349, and the gold pound increased to about EGP 49,920.
Gold prices in local markets and on the global exchange had risen by 1.9% during trading last week amid escalating geopolitical tensions and political unrest, which pushed the yellow metal to new record levels.
The price of gold reached its highest level ever in Asian trading on Monday, temporarily approaching $4,700 per ounce. The rise was fueled by a combination of geopolitical uncertainty and expectations of lower U.S. interest rates.
The precious metal had already set several consecutive records in the previous week, which market observers attribute primarily to strong hedging demand, as investors typically turn to stable-value assets during periods of escalating political risks.
For the commodities market, the intersection of geopolitical conflict and trade policy escalation is highly significant in several ways: firstly, hedging demand usually increases during such phases, benefiting gold prices as a traditional “safe-haven” asset. Secondly, tariffs and countermeasures can affect growth expectations, supply chains, and inflation, which in turn influence interest rates and currency discussions.
Currently, the main driver for investors in precious metals is immediate hedging demand. The market received additional support following President Trump’s threat to impose new tariffs on eight European countries in response to his Greenland initiative. Trump threatened a 10% tariff on goods from these countries starting February 1, rising to 25% in June if no agreement is reached.
The announcement drew sharp criticism from European officials and raised concerns about a broader transatlantic trade conflict. The EU, particularly its major countries, described Trump’s threats as a form of coercion, and France proposed unprecedented counter-economic measures.
Alongside rising geopolitical risks, this sparked a new wave of global risk aversion, pushing investors toward traditional safe-haven assets and supporting gold prices.
Meanwhile, concerns over a trade war have triggered a confidence crisis in U.S. assets, pushing the U.S. dollar away from its highest level since December 9, recorded last week. This factor provides additional support for gold prices; however, the lowered expectations of two additional U.S. Federal Reserve rate cuts in 2026 limit speculators’ bets on a weaker dollar and act as a constraint for a non-yielding asset like gold.
Investors also appear cautious, preferring to wait for further indicators regarding the Fed’s interest rate path. Focus is therefore on the release of the U.S. Personal Consumption Expenditures (PCE) price index and the final Q3 GDP, both scheduled for Thursday.
Trump reiterated on Saturday his intention to impose additional tariffs, stating that the U.S. will maintain its position until Greenland is allowed to be purchased, reigniting trade war concerns and pushing gold prices to new record levels on Monday.
Amid rising tensions with the U.S., Iran issued a new warning that any attack on Supreme Leader Ayatollah Ali Khamenei could trigger a full-scale war. Additionally, the ongoing Russia–Ukraine conflict maintains geopolitical risks and reinforces gold’s value as a safe haven.
Ukrainian Foreign Minister Andriy Sybiha stated there is evidence that Russia is considering attacks on key sites related to nuclear power plants, while President Volodymyr Zelensky added that Russian strikes demonstrate Moscow’s lack of interest in diplomacy or ending the war.
On monetary policy, Trump indicated his preference to retain Kevin Hassett, Director of the National Economic Council, in his current role, hinting that someone else may succeed Jerome Powell, Chair of the Federal Reserve, prompting investors to scale back bets on further aggressive monetary easing.
Nevertheless, the U.S. dollar struggles to capitalize on any shift in Fed rate-cut expectations, falling sharply from recent highs. Monetary policy continues to shape the market environment, with expectations that gold prices are supported by projections of Fed rate cuts later in the year, underpinned by weaker U.S. economic data and lower inflation indicators.
In general, lower interest rates reduce the opportunity cost of holding non-yielding assets, benefiting both gold and silver.
Finally, tensions in the Middle East also played a role, with gold prices rising last week amid renewed concerns over developments in the region, including Iran-related tensions.
In summary, the current market environment creates conditions in which both gold and silver benefit from risk aversion and monetary policy expectations, while political headlines continue to play a major role in shaping short-term price direction.
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