Gold prices in both local and global markets surged on Tuesday, with the metal setting a new all-time high, supported by a weaker U.S. dollar ahead of the Federal Reserve’s policy meeting on Wednesday, where expectations of a rate cut are running high, according to a report issued by the iSagha platform for gold and jewelry trading.
Said Embabi, CEO of iSagha, stated that local gold prices rose by 25 Egyptian pounds during today’s trading compared to yesterday’s close, with 21-karat gold reaching EGP 4,970 per gram. On international markets, the ounce climbed $15 to settle at $3,696, after touching an all-time peak of $3,699.
Meanwhile:
24-karat gold recorded EGP 5,680 per gram
18-karat gold reached EGP 4,260
14-karat gold stood at EGP 3,314
The gold pound coin stabilized at EGP 39,760
On Monday, prices had already risen sharply: 21-karat gold gained 45 pounds, moving from EGP 4,900 at the open to EGP 4,945 at the close, while the ounce advanced $38, from $3,643 to $3,681.
Drivers Behind the Surge
Gold’s unprecedented rally reflects rising expectations that the Federal Reserve will move to cut interest rates this week.
Demand for gold has been fueled by a weaker dollar and declining U.S. Treasury yields, making the metal more attractive as a safe-haven and low-cost alternative asset.
Analysts note that markets have already priced in at least a 25-basis-point cut, with the possibility of a deeper reduction should the Fed show greater concern about slowing economic growth.
Recent U.S. macroeconomic data pointing to a weakening labor market has further strengthened bets on three Fed rate cuts this year.
These expectations propelled gold to its all-time peak near $3,699 per ounce, extending a rally that began in early September and bolstered by strong investment flows into global gold-backed funds.
Political and Institutional Context
The new record coincides with a globally dovish monetary tone, a softer dollar, and robust institutional demand—all factors that tilt risks in favor of continued gains in the near term.
On Monday, President Donald Trump urged Fed Chair Jerome Powell via social media to implement a “larger” rate cut.
At the same time, a U.S. Court of Appeals rejected Trump’s attempt to dismiss Lisa Cook, a member of the Federal Reserve’s Board of Governors, in the latest twist of a legal battle seen as a threat to the central bank’s independence.
Investment Demand Rising
The SPDR Gold Trust, the world’s largest gold-backed ETF, reported its holdings increased by 0.21% on Monday to 976.80 tonnes, up from 974.80 tonnes on Friday, in line with broader bullish sentiment on the metal.
Global financial institutions are also raising their forecasts:
UBS and ANZ now project gold could reach $3,800 by year-end, with the potential to test $4,000 by 2026 if monetary easing continues and geopolitical risks intensify.
Central banks remain key players, steadily building their reserves. This reflects that demand is not merely speculative but part of a deeper restructuring of the global monetary system.
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