Gold prices posted strong gains in both local and global markets during Wednesday’s trading session, driven by the U.S. dollar’s slide to its lowest level in nearly four years and heightened market anticipation ahead of the Federal Reserve’s monetary policy decision, according to a report by the iSagha platform.
Saeed Embabi, CEO of iSagha, said domestic gold prices rose by about EGP 195 during the session, with 21-karat gold reaching EGP 7,045 per gram. Meanwhile, global spot prices climbed by roughly $189 per ounce to $5,273, before touching fresh all-time highs.
He added that 24-karat gold recorded around EGP 8,052 per gram, 18-karat gold stood at about EGP 6,039, while the gold pound rose to nearly EGP 56,360.
Globally, gold broke through the $5,300 per ounce barrier for the first time in history, with spot prices hitting around $5,309 per ounce, marking gains of more than 22% since the start of the year amid growing demand for safe-haven assets.
The rally reflects mounting concerns in financial markets due to economic and geopolitical uncertainty, alongside policies and statements by U.S. President Donald Trump that have fueled worries over the future of the dollar and the independence of the Federal Reserve.
Demand for gold has intensified amid rising expectations of U.S. interest rate cuts, enhancing the appeal of the non-yielding precious metal. Fears of a “confidence crisis” in the U.S. dollar have also accelerated selling pressure, particularly after Trump hinted at a broad consensus within the White House favoring a weaker dollar going forward.
In the same context, Trump announced plans to soon reveal his nominee for Federal Reserve Chair, predicting swift interest rate cuts once the new chair takes office—adding to market tension ahead of remarks later today by current Fed Chair Jerome Powell.
Markets widely expect the Federal Reserve to keep interest rates unchanged at its current meeting, though investors are closely watching for clearer signals regarding the future path of monetary policy.
Looking ahead, Deutsche Bank said gold prices could rise to $6,000 per ounce in 2026, citing sustained investment demand and increasing allocations by central banks and investors toward tangible, non-dollar assets.
Geopolitical developments have also supported gold, including growing friction between the United States and NATO, the ongoing Russia-Ukraine war with no clear resolution in sight, and renewed fears of a trade war following U.S. threats to impose steep tariffs on Canada.
The latest round of U.S.-brokered peace talks between Russia and Ukraine ended without agreement after Kyiv firmly rejected Moscow’s demands regarding the Donbas region, further underpinning gold’s role as a safe haven.
Market attention is now focused on the press conference following the Federal Reserve meeting, where Jerome Powell’s comments are expected to play a decisive role in shaping global market sentiment and the near-term outlook for gold prices.
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