Gold Continues to Rise Locally and Globally Amidst Weak Dollar and Increased Safe-Haven Demand

Gold prices recorded a new increase in the local and global markets during Thursday's trading, supported by a slight decline in the performance of the US Dollar and a return to demand for the precious metal as a safe haven amidst current economic tensions, according to a report by the "i-Sagha" platform, which specializes in gold and jewelry trading.

Saeed Embaby, Executive Director of the "i-Sagha" platform, said that gold prices in the Egyptian market rose today by EGP 25, with one gram of 21-carat gold recording approximately EGP 5,310, while the ounce globally rose by about $40 to reach $3,975.

He added that 24-carat recorded EGP 6,069, 18-carat reached EGP 4,551, while 14-carat settled at EGP 3,540, and the price of the Gold Pound reached EGP 42,480.

Prices had decreased yesterday by about EGP 40 locally, while the ounce lost $25 globally.

Drivers of the Rise: Dollar Decline and Government Shutdown Fears

The report explained that gold reinforced its daily gains, supported by market fears regarding the repercussions of the US government shutdown, which entered its fourth week. This pressure weighed on the Dollar and reactivated demand for safe havens.

The report indicated that US Federal Reserve Chairman Jerome Powell rejected market expectations for an additional rate cut in December, which limited the Dollar's losses but did not stop gold's gains.

In contrast, optimism regarding the US-China negotiations after the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping helped temper the pace of the climb, as Trump announced that "rare earth metal agreements have been settled" and that "soybean purchases will begin immediately," which restored some confidence to the markets.

Federal Policy: Precision Monetary Easing

The US Central Bank announced a 25 basis point rate cut for the second time this year, amid division within the Board of Governors; some called for a deeper cut, while others rejected any cut, fearing inflation.

The bank confirmed that it would stop shrinking its balance sheet by the end of the year, marking an end to the tightening phase. However, Powell's subsequent statements emphasized caution in taking further steps without the complete economic picture being clear, which kept the markets in a state of anticipation.

Gold in Egypt: Relative Decline in Consumer Demand

The World Gold Council (WGC) revealed in its quarterly report issued today that total consumer demand in Egypt reached 32.5 tonnes during the first nine months of 2025, a 14.5% decrease compared to the same period last year.

In the third quarter alone, total demand reached 9.93 tonnes, a 13.8% decline from the second quarter and a 4.6% decline from Q3 2024, reflecting a relative calm in purchases after a strong wave in the first half of the year.

The report clarified that gold jewelry purchases recorded 4.35 tonnes, with a quarterly decrease of 23%, while demand for bars and coins slightly decreased by 5% to 5.57 tonnes, with a slight annual increase of 5%, confirming gold's continuation as a direct savings and investment tool.

Middle East and Global: Regional Slowdown and Intensive Central Bank Buying

The report indicated that consumer demand in the Middle East reached about 62.17 tonnes in Q3 2025, down 12% quarter-on-quarter, but stable annually (+1.9%).

In contrast, global purchases by Central Banks surged to 220 tonnes between July and September, a 28% increase quarter-on-quarter, with Kazakhstan and Brazil topping the list of buyers by adding 18 and 15 tonnes, respectively, to their reserves.

Globally, total gold demand (including OTC) reached approximately 1,313 tonnes, the highest quarterly level since data recording began, driven by rising prices to an average of $3,456.5 per ounce, an annual increase of 40%.

Despite the volatility in gold prices, the general trend remains upward, supported by the decline of the Dollar, increased purchases by Central Banks, and the continuing state of uncertainty in global markets.

Analysts believe that any new escalation in the US shutdown crisis or a slowdown in economic growth could give gold an additional push towards new record levels before the end of the year.