Gold prices continued their strong upward trend in local markets and on the global exchange as Monday’s trading neared close, reaching new historical highs. The surge comes amid escalating geopolitical and trade tensions worldwide, along with growing economic concerns, which have boosted investor demand for the yellow metal as a safe haven, according to a report by the Ai Sagha platform.
Saeed Embabi, the platform’s CEO, stated that local gold prices rose by about EGP 65 during Monday’s trading, bringing 21-carat gold to EGP 6,800 per gram. On the global exchange, the ounce climbed by roughly $102 to trade near $5,090, after touching an all-time high of $5,111 in the early European session.
Embabi added that 24-carat gold reached around EGP 7,771 per gram, 18-carat gold stood at EGP 5,829, and the gold pound increased to approximately EGP 54,400.
He also noted that local gold prices surged by around EGP 580 over a single week. The 21-carat gram opened at EGP 6,155 and closed the week at EGP 6,735. Globally, gold rose by about $392 per ounce, starting the week at $4,596 and closing near $4,988.
Gold reached a new record level above $5,100 per ounce, continuing its historic rally, driven by heightened geopolitical risks and global economic uncertainty, prompting investors to hedge through safe-haven assets.
This rise coincides with escalating tensions from Greenland and Venezuela to the Middle East, further enhancing gold’s appeal as a hedge against political and economic instability. These factors also continue to pressure the U.S. dollar, supporting gold prices and increasing its attractiveness for international buyers.
Investor concerns over the U.S. economic outlook have grown amid intensifying trade rhetoric from President Donald Trump, threats of new tariffs, repeated interventions in the Federal Reserve’s independence, and renewed fears of an imminent government shutdown.
Strong institutional and investment demand continues to support gold prices. The metal has gained about 18% since the beginning of the current month, following more than 65% growth last year, reflecting its expanding role as a store of value.
HSBC noted in a recent briefing that the latest rise in gold and silver prices is driven by geo-economic factors, particularly developments related to Greenland. Silver also reached a new record at $114 per ounce, supported by strong industrial demand.
Analysts at Union Bancaire Privée expect gold’s strong performance to continue, with a year-end target of $5,200 per ounce, fueled by ongoing investment demand from central banks and individuals.
Goldmans Sachs pointed out that gold demand has expanded to non-traditional channels, with ETF holdings increasing by about 500 tons since early 2025, alongside growing actual demand from high-net-worth investors. The bank raised its gold forecast for December 2026 to $5,400 per ounce, up from a previous estimate of $4,900.
Central bank purchases remain robust, averaging nearly 60 tons per month—well above the pre-2022 average of 17 tons—as emerging market central banks continue to bolster their gold reserves.
Markets are closely watching this week for the Federal Reserve’s decision on interest rates, Chairman Jerome Powell’s press conference, and key U.S. economic data, including consumer confidence and the Producer Price Index.
Meanwhile, the U.S. Dollar Index trades near 96.94 points, its lowest since mid-September, amid speculation of possible market intervention and rising concerns over a U.S. government shutdown, with closure probabilities reaching around 78%.
International institutions, including the London Bullion Market Association (LBMA), Société Générale, and Bank of America, project that gold prices could reach between $6,000 and $7,150 per ounce during 2026, supported by ongoing global economic and geopolitical risks.
Follow the latest news on Google News
