Gold prices surged to a fresh record high during Wednesday’s trading, driven by mounting expectations that the U.S. Federal Reserve will cut interest rates and lingering uncertainty surrounding U.S. tariffs.
Local and Global Market Performance
In Egypt, gold prices rose by EGP 20 compared to yesterday’s close, with 21-karat gold reaching EGP 4,820 per gram, while spot gold added $10 globally to trade at $3,547 per ounce.
24-karat gold: EGP 5,509.
18-karat gold: EGP 4,132.
14-karat gold: EGP 3,014.
Gold pound coin: EGP 38,560.
On Tuesday, gold prices had already posted strong gains, with 21-karat jumping by EGP 75, opening at 4,725 and closing at 4,800 per gram. Globally, gold rose $60, moving from $3,477 to $3,537 per ounce.
The metal reached an all-time high near $3,550 per ounce as investors dumped long-dated government bonds worldwide.
Drivers of the Rally
Gold received further support from growing conviction that the Fed will cut rates at its upcoming September 17 meeting. According to the CME FedWatch Tool, markets are pricing in a 90%+ probability of a 25-basis-point cut, with expectations of at least two additional cuts by year-end. This continues to bolster demand for the non-yielding metal as a safe-haven asset.
Meanwhile, U.S. President Donald Trump has been pressuring Fed Chair Jerome Powell to accelerate the pace of easing. His move to dismiss Fed Governor Lisa Cook over alleged mortgage fraud has raised serious concerns about the central bank’s ability to operate independently of political interference.
Uncertainty also deepened after Trump announced plans to seek an urgent Supreme Court ruling on tariffs recently deemed illegal by a U.S. appeals court, adding another layer of risk and lifting gold’s appeal as a hedge.
Supporting Economic Factors
Broader concerns are mounting as the ballooning U.S. fiscal deficit, persistent inflation, and declining credibility of global central banks push bond yields higher, fueling fears over sovereign debt sustainability. These developments have helped the U.S. dollar retain recovery gains, even as the pound sterling and Japanese yen weakened overnight, limiting new bullish positions on gold amid overbought conditions.
Still, gold has climbed 5% in just the past six days, reflecting heightened fears about the Fed’s future following Trump’s attempt to oust Cook.
Carol Kong, strategist at Commonwealth Bank of Australia, noted: “Trump’s return to the White House may have reshaped investor preferences toward traditional safe havens, with gold leading the pack.”
Overall, gold has gained more than 30% since the start of 2025, in an extraordinary rally amplified by the erosion of the U.S. dollar’s safe-haven status amid growing political interference in U.S. institutions.
Central Banks Keep Buying Despite High Prices
World Gold Council data showed that central banks added just 10 tonnes of gold to reserves in July 2025, a slower pace than in prior months but still reflecting net positive purchases.
Kazakhstan: +3t in July, 25t YTD (third-largest buyer after Poland and Azerbaijan).
Turkey, China, Czech Republic: +2t each.
Turkey has now purchased gold for 26 straight months since June 2023.
The Czech National Bank has bought gold for 29 consecutive months since March 2023.
The People’s Bank of China has purchased gold for nine straight months, totaling 36t.
Poland: remains the largest buyer with 67t YTD, though unchanged since May.
Uganda: announced a 2–3 year pilot program to purchase gold locally from artisanal miners to build reserves and reduce reliance on foreign assets.
U.S. Economic Calendar
Markets now await key U.S. economic releases likely to shape the Fed’s policy path:
Wednesday: Job Openings and Labor Turnover Survey (JOLTS).
Thursday: ADP private payrolls, jobless claims, ISM services PMI.
Friday: Nonfarm Payrolls (NFP), the most closely watched indicator guiding Fed decisions.
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