Gold Continues Setting Record Highs Ahead of Federal Reserve Minutes

Gold prices rose in both local and global markets during Wednesday’s trading session, supported by strong investment demand amid escalating geopolitical and economic uncertainty worldwide. Markets are increasingly betting on further U.S. interest rate cuts in the coming months, while investors await the release of the Federal Reserve meeting minutes later today, according to a report by iSagha, the platform specializing in gold and jewelry trading.

According to Saeed Embabi, CEO of iSagha, domestic gold prices jumped by EGP 95 today compared to yesterday’s closing, with the 21-karat gram reaching EGP 5,420. Meanwhile, spot gold surged by $65, hitting $4,045 per ounce, after touching $4,050 — a new all-time high.

Embabi added that 24-karat gold recorded EGP 6,194, 18-karat stood at EGP 4,646, and 14-karat at EGP 3,614, while the gold pound coin stabilized at EGP 43,360.

Yesterday, Tuesday, gold prices had already risen by EGP 25, with the 21-karat opening at EGP 5,300 and closing at EGP 5,325, while the global ounce climbed from $3,960 to $3,980.

Global Gold Touches Fresh All-Time High

Gold prices continued their strong upward momentum in global markets, driven by a surge in safe-haven demand amid persistent geopolitical uncertainty and growing expectations of further U.S. interest rate cuts, alongside the ongoing U.S. government shutdown, now in its second week.

Analysts note that gold remains in a firm uptrend supported by solid fundamentals. Traders now anticipate the Federal Reserve will cut rates two more times — by 25 basis points each in October and December — following the start of the monetary easing cycle in September.

The prolonged government shutdown continues to raise concerns about U.S. economic performance, prompting investors to hedge through gold. Despite the U.S. dollar climbing to its highest level since late August, the bullish momentum in gold remains intact, as investors overlook overbought technical conditions.

Record Inflows and Strong Institutional Demand

According to the World Gold Council (WGC), total investments in gold-backed exchange-traded funds (ETFs) have reached $64 billion so far this year, with September witnessing the largest monthly inflow in over three years, signaling growing urgency among investors seeking protection against potential market shocks.

Data also showed that global central banks added around 15 tonnes to their reserves in August, led by the National Bank of Kazakhstan, as part of efforts to diversify assets away from the U.S. dollar and government debt instruments.

Similarly, the People’s Bank of China continued expanding its gold holdings for the 11th consecutive month in September, raising its total to 74.06 million ounces, underscoring the sustained trend among major central banks to accumulate the precious metal.

Optimistic Outlook

The iSagha report highlighted that gold has gained approximately 54% year-to-date, fueled by strong central bank purchases, rising ETF demand, a weaker U.S. dollar, and growing interest from retail investors seeking a hedge against inflation and geopolitical tensions.

Meanwhile, Goldman Sachs has raised its December 2026 gold price forecast from $4,300 to $4,900 per ounce, citing robust institutional demand and ongoing central bank accumulation.

Analysts believe that the combination of factors — including the U.S. government shutdown, declining confidence in government bonds as a traditional safe haven, and global political uncertainty — provides a perfect storm driving gold toward new record highs. They expect the metal could surpass $5,000 per ounce in the coming months if these conditions persist.