Gold prices climbed in both local and global markets on Tuesday, reaching their highest levels in about three weeks, supported by growing bets that the reopening of the U.S. government could revive economic activity and prompt the Federal Reserve to cut interest rates next month, according to a report by iSagha Gold & Jewelry Trading Platform.
Saeed Embabi, the platform’s CEO, said local gold prices rose by around EGP 40 per gram during today’s trading, with 21-karat gold reaching EGP 5,535 per gram, while the ounce gained about $31 to trade at $4,143.
He added that 24-karat gold hit EGP 6,326, 18-karat stood at EGP 4,744, and 14-karat reached EGP 3,690, while the gold pound coin remained steady at EGP 44,280.
Gold had already gained about EGP 150 on Monday, when the 21-karat gram opened at EGP 5,345 and closed at EGP 5,495, while globally, the ounce rose from $4,001 to $4,112.
On the international stage, spot gold advanced to $4,143 per ounce after touching $4,149 earlier — the highest since October 23 — though still below the October 20 peak of $4,381.
Analysts noted that improved market risk appetite, driven by hopes of ending the U.S. government shutdown, helped support prices, while expectations of a December rate cut bolstered demand for the metal as a safe haven.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, said:
“The reopening of the U.S. government will restore the flow of economic data, increasing the likelihood of a rate cut next month,” adding that “renewed fiscal concerns and rising government borrowing are also supportive for gold.”
According to the CME Group’s FedWatch tool, markets are now pricing in a 64% probability of a 25-basis-point rate cut in December, amid ongoing divisions within the Fed about the path forward for monetary policy.
Recent U.S. employment data for October showed job losses in government and retail sectors, along with consumer confidence falling to a three-and-a-half-year low, further strengthening the case for monetary easing.
The report added that gold continues to benefit from economic pressures linked to the U.S. government shutdown, as investors fear its negative impact on growth, particularly amid persistently weak consumer sentiment and slowing economic activity.
At the same time, the U.S. dollar’s decline, coupled with bank closures for Veterans Day, helped ease pressure on gold, while investors await Fed officials’ remarks later this week for clearer signals about the pace of upcoming rate cuts.
The report also highlighted that ongoing geopolitical and trade tensions, alongside a softening U.S. labor market, have reinforced gold’s appeal as a safe-haven asset.
Meanwhile, Saxo Bank noted in a research memo that gold could approach $5,000 per ounce within the next 12 months, while silver might rise to around $65, citing a “profound shift in investor behavior and risk perception.”
The bank observed that precious metals have outperformed all other exchange-traded commodities, with silver outperforming gold by more than 5%, while platinum and palladium also posted strong gains.
Analysts expect that the resumption of U.S. economic data releases following the government’s reopening will confirm a slowdown, potentially prompting the Federal Reserve to implement further rate cuts through 2026 — a scenario that could sustain gold’s strong upward momentum in the coming months.
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