Gold Hits Record High as Supreme Gold Committee Plays Key Role in Organizing Egypt’s Market

Gold prices surged in local and global markets during mid-day trading on Thursday, surpassing $4,900 per ounce, despite easing tensions between the United States and Europe following an agreement on Greenland.

Emad Saad, a gold market expert, said that domestic gold prices rose by about 100 Egyptian pounds, bringing the price of 21-carat gold to approximately 6,580 EGP per gram. Meanwhile, the global gold ounce increased by $76, reaching $4,916, marking an all-time high.

He added that 24-carat gold reached around 7,520 EGP per gram, 18-carat gold was about 5,640 EGP per gram, and the Egyptian gold pound rose to roughly 52,640 EGP.

Saad explained that geopolitical tensions have driven gold prices to unprecedented levels in both local and global markets. These conditions remain supportive, bolstered by ongoing purchases from central banks, which have strengthened international institutions’ expectations of continued gold price growth.

He also noted that local markets are witnessing strong demand from citizens, particularly for gold bars, as people increasingly recognize gold’s role in preserving wealth and generating profits unmatched by other investment tools.

Saad expects gold prices to continue rising in the coming period, driven by the same factors, including geopolitical tensions, economic data, and sustained central bank purchases.

Regarding the role of the Supreme Gold Committee—established by presidential decree to maximize the added value of gold in Egypt and transform the country from a raw exporter into an industrial hub—Saad expressed hope that the committee will help regulate the gold market, address challenges faced by manufacturers and traders, organize the market, and protect citizens’ rights, while supporting the development of the industry, generating foreign currency, and creating employment opportunities.

According to an official statement from the Cabinet, the committee’s first meeting reviewed its mandates, which include preparing a comprehensive strategic plan to advance Egypt’s gold sector across all stages (extraction, refining, smelting, manufacturing, and trading) and drafting the necessary legislation and policies to govern the sector.

The report from Ai Saghah platform noted that despite easing geopolitical tensions and former U.S. President Trump retracting his statements about imposing tariffs on several European countries over the Greenland dispute, U.S. economic data continued to support global gold demand.

The report highlighted that ongoing concerns over the Federal Reserve’s independence, expectations of U.S. interest rate cuts, the Russia-Ukraine conflict, and strong central bank demand all supported gold prices.

Recent U.S. economic data showed stable inflation alongside robust economic growth. Core personal consumption expenditures rose 2.9% quarterly in Q3, in line with expectations and unchanged from the previous quarter. The annual GDP growth for Q3 was 4.4%, exceeding market expectations of 4.3% and compared to 3.8% in Q2. Initial jobless claims fell to 200,000, well below forecasts.

In delayed PCE data, the core index—the Fed’s preferred measure of inflation—increased 0.2% over October and November, with annual core inflation rising to 2.8% in November from 2.7% in October, remaining above the Fed’s 2% target.

Although inflation data did not indicate sharp acceleration, the slightly higher-than-expected figures reinforced the view that rate cuts may not be imminent. Analysts suggest that inflation and interest rate data will likely play a secondary role in the gold market, given the metal’s continued status as a safe haven amid geopolitical risks and political uncertainty.

On monetary policy, markets expect a 50-basis-point rate cut by year-end, despite broad expectations that the Federal Reserve will maintain its policy unchanged at its meeting scheduled for January 27-28.

A Reuters poll published Wednesday showed that 58% of economists expect no change in rates in Q1, while 55 out of 100 respondents expect rate cuts to resume in June or later, after Jerome Powell’s term as Fed Chair ends in May.

The report concluded that gold remains firmly above the psychological support level of $4,800 per ounce, supported by a delicate balance between strong U.S. economic data and ongoing global geopolitical risks.