Gold prices rose in local markets and the global exchange during Saturday’s trading, coinciding with the global markets' weekend break. This surge was supported by strong weekly gains of 4.5% for the ounce, driven by rising demand, a weak U.S. dollar, and declining liquidity as year-end trading approaches, according to a report by the "iSagha" platform.
Saeed Imbabi, CEO of the "iSagha" platform, stated that gold prices in the local market rose by about 20 EGP during today’s trading. The price of a gram of 21-karat gold recorded a level of 6,060 EGP, while the global ounce rose by about $194 during the week to record approximately $4,533, after touching an all-time historical high of $4,555.
Imbabi added that the price of a gram of 24-karat gold recorded about 6,926 EGP, and a gram of 18-karat gold reached about 5,194 EGP, while the Gold Pound coin recorded approximately 48,480 EGP.
The report indicated that gold prices hit unprecedented historical levels during the final days of 2025, driven by continued bullish momentum in global precious metals markets. This is due to escalating expectations of monetary policy easing by the U.S. Federal Reserve, alongside a weak dollar, rising geopolitical tensions, and strong investment inflows—factors that pushed gold and silver to achieve strong gains during the last week of the year.
The weak dollar contributed to reducing the opportunity cost of holding gold, while geopolitical tensions kept demand strong. Meanwhile, lower trading volumes during year-end holidays, especially in the Asia-Pacific region, led to amplified price volatility during trading sessions.
The current rally was further boosted by continued gold purchases by central banks, as well as renewed interest in gold-backed Exchange Traded Funds (ETFs). Policymakers are seeking to diversify their reserves, and investors are rushing to hedge against risks and stock market declines.
Gold typically benefits from declining real yields and a weak U.S. dollar. Recent interest rate cuts by the Federal Reserve and its future guidance have lowered interest rate expectations, reducing the cost of holding gold as a non-yielding asset and contributing to continued gains during the holiday season.
In this context, Goldman Sachs views gold as the best investment bet within commodity markets during 2026, forecasting that prices could exceed the $4,900 per ounce level, especially if the portfolio diversification trend expands to include retail investors alongside central banks.
The bank explained that strong demand from central banks remains the main driver for gold's rise, expecting purchasing operations to continue at an average of 70 tons per month in 2026. This is supported by increasing geopolitical risks and the desire of countries—especially in emerging markets—to reduce reliance on the dollar.
The report noted that an expected U.S. interest rate cut of about 50 basis points, along with a weak dollar and declining real yields, enhances gold's appeal as a hedging asset, at a time when markets are witnessing escalating geopolitical and technological competition between the United States and China.
Goldman Sachs also pointed out that retail investor participation remains limited, as gold ETFs represent only a tiny fraction of financial portfolios. This opens the field for an additional wave of demand that could push prices to new record levels.
According to the bank's forecasts, gold may retreat temporarily to near $4,200 per ounce in the first quarter of 2026 before resuming its ascent, recording new historical peaks with the possibility of reaching $4,900 by the end of the year.
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