Gold Continues to Rise Locally and Globally… Ounce Hits a New Historic High

Gold prices surged in both local and international markets on Monday, with the ounce extending its record-breaking rally after a sharp slowdown in the U.S. labor market boosted expectations of a Federal Reserve rate cut this month, according to a report by the “iSagha” platform.

Saeed Embabi, CEO of iSagha for online gold and jewelry trading, said local gold prices rose by about 25 Egyptian pounds compared to Saturday’s closing (end of the week), with the 21-carat gram reaching 4,890 EGP. Meanwhile, the ounce climbed by $28 to hit $3,634—its highest level in history.

He added that 24-carat gold recorded 5,589 EGP, 18-carat at 4,191 EGP, and 14-carat at 3,260 EGP, while the gold pound stabilized at 39,120 EGP. Gold prices had already jumped by 175 EGP last week, while the ounce gained about $140.

Gold has risen nearly 37% since the beginning of 2025, driven by central bank purchases—particularly in Asia—and mounting macroeconomic uncertainty. Prices clearly broke above $3,600 amid growing bets on rate cuts, while silver also crossed the $41 mark today as risk appetite diverged, with traders awaiting U.S. inflation data.

The latest rally came after the release of U.S. employment data, which strengthened expectations of imminent Fed rate cuts. The U.S. economy added just 22,000 jobs in August, with unemployment rising to 4.3% and annual wage growth slowing to 3.7%. Previous revisions showed 13,000 jobs lost in June, reflecting weakening labor market momentum.

Markets now anticipate a 25-basis-point cut in September, with further easing priced in before year-end. Meanwhile, 10-year Treasury yields are nearing a five-month low.

Investors are focusing on this week’s U.S. Consumer Price Index (CPI). A weaker reading could push gold to fresh highs, while stronger data might trigger temporary profit-taking. Giovanni Staunovo of UBS forecasts gold reaching $3,700 an ounce by mid-2026.

Central banks remain net buyers of the metal even at current price levels, continuing to provide support for the non-yielding asset. However, overbought conditions may limit new bets against the U.S. dollar until fresh inflation figures are released later this week.

Global markets are navigating an extraordinary moment of uncertainty, fueled by tariff disputes, monetary easing expectations, concerns over U.S. debt, and growing debates about the Fed’s independence.

On Friday, President Donald Trump signed an executive order exempting graphite, tungsten, uranium, gold bullion, and other metals from tariffs imposed on all countries, while subjecting silicon products to duties. The changes take effect Monday.

This move formalizes the exemption of gold bullion from import tariffs, following confusion weeks earlier when a U.S. Customs and Border Protection notice had suggested bullion would be subject to new taxes, causing disruption among traders.