Gold prices rose slightly in local markets and the stock exchange during Tuesday’s trading, driven by persistent geopolitical tensions between the United States and Venezuela. This has bolstered demand for gold as a premier safe haven, according to a report issued by the "ISagha" platform.
Saeed Embabi, CEO of the "ISagha" platform, stated that gold prices in the local market rose by approximately 10 EGP, with the price of 21-karat gold recording about 5,980 EGP per gram. This coincided with a global rise in the ounce price by about $20, reaching the level of $4,464.
Embabi explained that the price of 24-karat gold reached approximately 6,834 EGP per gram, while 18-karat recorded nearly 5,126 EGP, and the gold pound price rose to about 47,840 EGP.
Gold prices rose, driven by increasing geopolitical risks associated with the situation in Venezuela, alongside macroeconomic uncertainty, which enhanced the appetite for precious metals as safe havens.
ING Bank commodity experts Ewa Manthey and Warren Patterson noted that continued central bank purchases, along with expectations of monetary policy easing, provide strong support for gold prices. Meanwhile, silver benefits from a combination of growing industrial demand and its appeal as a hedging tool during times of turmoil.
Gold and silver prices continue to record consecutive gains amidst escalating hedging demand, as markets focus once again on developments in Venezuela, especially following recent political events. This suggests a continuation of bullish momentum for precious metals until tensions subside or the path of global monetary policy becomes clear.
Geopolitical risks remain strongly present, given US military strikes in Venezuela, escalating political tensions between Saudi Arabia and the UAE, ongoing unrest in Iran, and the continuation of the Russia-Ukraine war. This supports demand for gold as a safe haven and reinforces a positive near-term price outlook, especially with expectations of the US Federal Reserve adopting a more accommodative approach.
In this context, market participants anticipate the possibility of two additional US interest rate cuts this year. This view was bolstered by mixed data from US Purchasing Managers' Indices (PMI) for December, which reflected a relative slowdown in some sectors of economic activity.
Concerns regarding the independence of the Federal Reserve under the administration of US President Donald Trump also contributed to pressure on the US dollar, which retreated from its highest levels in about four weeks, providing additional support for non-yielding gold.
Investors are closely awaiting the release of the US Non-Farm Payrolls report on Friday, considering it one of the most prominent short-term market catalysts due to its direct impact on monetary policy expectations and dollar movement.
Gold maintains its upward trajectory in the near term, supported by safe-haven flows and increasing bets on a more flexible monetary policy from the Federal Reserve.
This followed remarks by US President Donald Trump, in which he indicated the possibility of carrying out a second military strike on Venezuela if the concerned parties do not cooperate with US efforts to restore stability.
Trump also warned that Colombia and Mexico could face military measures if they do not curb the flow of illicit drugs into the United States, raising fears of widening regional instability in Latin America.
In a separate context, Saudi Arabia publicly accused the UAE of undermining its national security, adding further complexity to the global geopolitical landscape.
On the economic data front, S&P Global data showed the US Manufacturing PMI stabilizing at 51.8 points, indicating continued growth. Meanwhile, the Institute for Supply Management (ISM) index fell to 47.9 points, reflecting continued contraction in industrial activity, which reinforced expectations of monetary easing.
All eyes are on a series of US economic data this week, including the Services PMI, the JOLTS job openings report, and unemployment claims, leading up to the Non-Farm Payrolls report, which will play a pivotal role in determining the path of the dollar and gold prices in the coming period.
According to the CME FedWatch tool, markets widely favor holding interest rates steady during the Federal Reserve meeting scheduled for January 27 and 28, with rising probabilities of a rate cut during the upcoming March meeting.
In this framework, Bank of America confirmed that gold will remain one of the most important hedging tools within investment portfolios. Michael Widmer, the bank's Head of Metals Research, suggested that the average price of gold could reach approximately $4,538 per ounce in 2026, noting that silver could witness historic leaps ranging between $135 and $309 per ounce, based on historical price cycles.
Widmer explained that continued central bank purchases, declining supply, and rising production costs, alongside escalating geopolitical risks, are all factors supporting a positive outlook for gold and precious metals. He emphasized that gold continues to play a pivotal role as an effective hedging and diversification tool amidst a global economic environment characterized by uncertainty.
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