Gold Hits All-Time High as Ounce Gains 69% Since Start of the Year

Gold markets, both locally and globally, recorded a notable rise in prices on Monday, after the ounce reached its highest level ever. The surge comes amid increased investor demand for safe-haven assets, supported by market expectations of U.S. interest rate cuts and escalating geopolitical tensions, according to a report by the I Sagha platform.

Saeed Embaby, Executive Director of the platform, said that local gold prices rose by about EGP 85, with the price of 21-karat gold reaching EGP 5,875 per gram. Meanwhile, the global gold ounce climbed by around $87 to register $4,426, marking the highest level in its history.

He added that 24-karat gold recorded EGP 6,714 per gram, 18-karat gold reached EGP 5,036 per gram, while the price of a gold pound stood at EGP 47,000.

Local gold prices had already risen by about EGP 45 during the past week. Trading in 21-karat gold began at EGP 5,745 per gram, touched EGP 5,800, and closed at EGP 5,790. Globally, the ounce gained about $40 over the same period, opening at $4,299 and closing near $4,339.

Embaby noted that gold prices in both local and global markets were driven higher by increased demand for safe-haven assets amid a weaker U.S. dollar and heightened geopolitical tensions. Gold is now on track to post its strongest annual performance since 1979, having risen by around 69% since the beginning of the year.

This rally has been fueled by accommodative monetary policies adopted by the Federal Reserve, broad weakness in the U.S. dollar, continued purchases by central banks, and record inflows into gold-backed exchange-traded funds.

Markets continue to expect further monetary easing from the Federal Reserve through 2026, as recent data point to easing inflationary pressures and weakness in the U.S. labor market.

However, several U.S. economic indicators due for release on Tuesday could help shape near-term market direction. These include the four-week average change in employment according to the ADP index, the delayed preliminary third-quarter GDP report, durable goods orders, industrial production data, and consumer confidence.

On the monetary policy front, markets are currently pricing in two interest rate cuts by the Federal Reserve in 2026. Nevertheless, Federal Reserve officials remain divided over the need for additional easing following cumulative rate cuts totaling 75 basis points this year.

Beth Hammack, President of the Cleveland Federal Reserve Bank and a voting member of the Federal Open Market Committee in 2026, said in an interview with The Wall Street Journal that she sees no need to adjust interest rates for several months. She emphasized that inflation remains a key concern despite recent easing measures, suggesting that the central bank may keep interest rates within the current range of 3.50% to 3.75% through the spring.

Geopolitically, rising tensions between Iran and Israel, along with escalating frictions between the United States and Venezuela, are reinforcing gold’s appeal as a safe haven. Meanwhile, U.S.-led peace talks regarding the war in Ukraine are progressing gradually without achieving a decisive breakthrough, as Moscow continues to adhere to its territorial demands.

This latest rally comes amid expectations that gold may see a period of relative stability or modest profit-taking in the near term following the recent surge, before attempting another advance toward new record levels. Markets remain focused on upcoming U.S. economic data, which could play a decisive role in determining the precious metal’s trajectory in the period ahead.