Gold Gains EGP 920 Since Start of the Year as Escalating Risks Support Continued Price Growth

Gold prices in Egypt's local markets rose by approximately 0.4% during the week ending Saturday evening, in parallel with a 0.5% increase in global ounce prices. This was supported by a weaker U.S. dollar and political statements from President Donald Trump, which have heightened fears of a global trade war, according to a report from iSagha, an online platform specializing in gold and jewelry trading.

The price of 21-karat gold increased by EGP 20 over the past week, starting at EGP 4,640 per gram and closing at EGP 4,660. On global markets, the gold ounce gained $18, rising from $3,337 to $3,355.

Other gold prices in the local market,24K gold: EGP 5,326 per gram,18K gold: EGP 3,994 per gram,14K gold: EGP 3,107 per gram, Gold pound: EGP 37,280.

The local market remained relatively stable on Saturday, coinciding with the weekend closure of global exchanges. The 21K gold gram opened trading at EGP 4,660, dipped to EGP 4,650, then returned to close at the opening level.

Gold prices in local markets have surged by about 25%—an increase of approximately EGP 920—since the beginning of 2025. The 21K gold gram opened the year at EGP 3,740 and ended last week at EGP 4,660. Globally, the ounce rose by nearly 28%, gaining $731 over the same period. It opened the year at $2,624, reached a historic high of $3,500 on April 22, and closed last week at $3,355.

Egypt’s policy of devaluing the pound against the dollar, aimed at curbing high inflation and addressing the dollar shortage, has contributed to the rise in local gold prices. This comes in addition to global factors such as geopolitical tensions, strong central bank gold purchases, the declining U.S. dollar, eroding confidence in the dollar as the dominant reserve currency, and the controversial fiscal and trade policies enacted by President Trump.

Trump’s recent trade policies—including 35% tariffs on Canadian goods and raising overall tariffs on most trade partners from 10% to 15–20%, alongside a 50% tariff on copper imports—are expected to push gold prices even higher in the coming period.

Meanwhile, Austan Goolsbee, President of the Federal Reserve Bank of Chicago, stated that he does not understand the arguments in favor of lowering interest rates to reduce government debt, reaffirming that the Fed's core mandate is to promote employment and maintain price stability.

Looking ahead, markets are awaiting several key U.S. economic indicators next week, including the June Consumer Price Index (CPI), retail sales data, and initial jobless claims, in addition to a series of Federal Reserve officials' speeches before the pre-meeting blackout period begins on July 19.