Gold Continues to Shatter Records, Ounce Above $4,700

Gold prices rose in both local and global markets during Tuesday’s trading session, touching their highest levels on record in both markets, driven by escalating geopolitical tensions and renewed demand for safe-haven assets, according to a report issued by the iSagha platform.

Saeed Embabi, Executive Director of iSagha, said that gold prices in the local market jumped by about EGP 80 during today’s trading, with 21-karat gold recording EGP 6,355 per gram, while global gold prices rose by around $60 per ounce to reach $4,730.

Embabi added that 24-karat gold reached about EGP 7,263 per gram, 18-karat gold recorded approximately EGP 5,447 per gram, and the gold pound rose to around EGP 50,840.

Globally, gold posted a new all-time high on Tuesday, breaking above the $4,700-per-ounce level, amid intensifying geopolitical tensions that boosted strong demand for safe-haven assets, alongside a broad risk-off mood in global financial markets.

Gold prices in the local market have risen by 9% since the beginning of the year, while gold bullion on the global exchange has gained about 9.5%, surpassing the gains recorded in January 2025, which stood at roughly 6.6%.

Investor sentiment remains dominated by uncertainty, as trade tensions between the United States and the European Union have resurfaced. Over the weekend, U.S. President Donald Trump threatened to impose new tariffs on eight European countries over the Greenland issue, prompting sharp criticism from European leaders and warnings of retaliatory measures should the tariffs be implemented.

These developments have reignited fears of a broader transatlantic trade war, weighing on global equity markets and reinforcing demand for defensive assets, led by gold. Trump’s increasingly aggressive stance has also undermined confidence in U.S. assets, pressuring the U.S. dollar and pushing investors toward alternative G10 currencies and traditional safe havens.

Alongside trade concerns, the ongoing Russia–Ukraine war and persistent tensions in the Middle East continue to keep geopolitical risks elevated, providing additional support for gold prices.

In this context, the U.S. Dollar Index—which measures the dollar’s performance against a basket of six major currencies—extended its decline for a second consecutive day, trading near 98.45, close to a two-week low, giving further momentum to gold.

In a notable development, President Trump declined to rule out the use of military force to take control of Greenland, responding with “no comment” in an interview, while writing on Truth Social that Greenland is “vital to national and global security.” He added that the issue would also be discussed at the World Economic Forum in Davos.

Meanwhile, EU foreign policy chief Kaja Kallas said Europe “does not want a confrontation” with the United States but will stand its ground and has “a range of tools” to protect its interests if tensions escalate. Analysts note that the euro area, as the largest foreign holder of long-term U.S. Treasuries—accounting for about 21% of total foreign holdings—could theoretically use these assets as leverage in the event of an intensified trade dispute.

Markets are also bracing for several key events this week, including a U.S. Supreme Court ruling on the legality of President Trump’s tariffs, court hearings related to an attempt to remove Federal Reserve Governor Lisa Cook over alleged mortgage fraud, and the potential announcement of a new Federal Reserve chair.

Investor focus is also turning to upcoming U.S. economic data, led by ADP employment figures, inflation readings from the Personal Consumption Expenditures (PCE) index, third-quarter GDP numbers, preliminary global PMI surveys from S&P Global, and the University of Michigan’s consumer sentiment data.

Expectations suggest that gold continues to draw strong support from bets that the Federal Reserve will begin cutting interest rates later this year, amid weaker U.S. economic data and signs of easing inflation.

Economic reports further emphasize that escalating geopolitical tensions, rising fiscal deficits, political uncertainty, and record-high government and corporate debt levels in 2025 represent key structural drivers supporting gold, reinforcing its role as a low-volatility hedging instrument in a highly unstable macroeconomic environment.

On the demand side, central bank purchases remain a core pillar underpinning prices. Official-sector buying has become less sensitive to price fluctuations, strengthening gold’s long-term outlook and anchoring its stability above the $4,000-per-ounce level.