Economic expert John Luca affirmed that gold will remain the top safe haven for investors in the coming period, predicting that its upward momentum will continue in both global and local markets despite ongoing economic challenges.
“Gold is not just a metal; it is a shield against inflation and geopolitical tensions,” Luca said. “The year 2025 and beyond will witness historic highs for the precious metal.”
Discussing global trends, Luca noted that gold prices have surged by more than 54% since the beginning of the year, reaching a record high of $4,381 per ounce in October. He added, “According to projections by Morgan Stanley, gold is expected to reach $4,500 per ounce by mid-2026, driven by strong central bank demand and expectations of interest rate cuts from the U.S. Federal Reserve.”
Luca further stated that the average price of gold could stabilize around $3,400 per ounce in 2025, with prices exceeding $4,000 in 2026 for the first time, fueled by ongoing geopolitical tensions in the Middle East and Eastern Europe.
In a broader market analysis, Luca pointed out that HSBC Bank has raised its gold price forecast to an average of $3,355 in 2025, potentially reaching $5,000 per ounce in 2026, highlighting that “safe-haven demand from emerging markets, particularly China and India, will continue to drive the market upward—alongside a 58% rise in demand for gold ETFs in the third quarter of 2025.”
He added, “This rally reflects a 26% increase in global gold demand during the first half of the year, according to the World Gold Council, making gold a strategic investment amid persistent global economic uncertainty.”
On the domestic front, Luca said that Egypt stands to benefit directly from these trends, as the Central Bank of Egypt’s gold reserves reached 128.82 metric tons in the third quarter of 2025, with their value rising to $16.545 billion by the end of October.
“This 40% increase in the first nine months of the year strengthens the stability of the Egyptian pound and shields the economy from currency fluctuations,” he explained, “especially with Egypt’s total foreign reserves hitting $50.071 billion for the first time in history.”
Luca emphasized that local investment demand for gold surged by 58% between 2022 and 2023, and is expected to continue rising through 2025 as Egyptians seek protection against inflation, mirroring growing interest in silver as an economic alternative.
“With Egypt’s economic growth forecast improving to 4.2% in 2025, supported by reforms and international backing,” Luca added, “gold will become an essential investment tool for both individuals and institutions—especially with the expansion of exploration projects in the Eastern Desert following recent legislative amendments.”
He concluded, “I advise Egyptian investors to buy gold now—it’s not just an asset, but a guarantee for the future in an increasingly uncertain world.”
Follow the latest news on Google News
