Gold prices rise by EGP 105 in local markets over the course of a week

Gold prices rose by 2.5% in local markets during trading last week ending Saturday evening, while the global ounce rose by 2% during trading last week ending Friday evening, after hitting a record high. This was amid growing demand for safe havens driven by growing fears of a global trade war and rising inflation expectations.

Gold prices rose by approximately EGP 105 in local markets during trading last week, with the price of a gram of 21-karat gold opening at EGP 4,280, reaching EGP 4,390, and closing at EGP 4,385. Meanwhile, the global ounce rose by $61, opening at $3,024 and reaching $3,087 on Friday, March 28, its highest level in history. Trading ended at $3,085. The price of a gram of 24-karat gold reached EGP 5,011, while the price of a gram of 18-karat gold reached EGP 3,759. The price of a gram of 14-karat gold reached approximately EGP 2,924, and the gold pound reached approximately EGP 35,080.

Gold prices in local markets rose by approximately EGP 20 during trading yesterday, Saturday, with the price of a gram of 21-karat gold opening at EGP 4,365 and closing at EGP 4,385, coinciding with the global stock market's weekly holiday.

Gold prices rose to an all-time high last week, driven by growing fears of a global trade war and rising inflation expectations. Investors turned to the yellow metal as a safe haven amid President Donald Trump's renewed threats to impose tariffs on markets, which raised market concerns about economic stability and the direction of US monetary policy in the coming period.

Gold prices in local and global markets witnessed sharp increases, with 21-karat gold reaching EGP 4,390, the highest level in history, during trading yesterday, Saturday, while the ounce reached an all-time high of $3,087. This was due to developments in global markets, which confirm a trend towards hedging against inflation and increasing economic uncertainty.

He pointed out that the ease with which gold surpassed $3,000 per ounce after the recent wave of profit-taking indicates market strength, and as long as the geopolitical situation remains unchanged, gold's safe haven status will remain. While Trump's proposed reciprocal tariffs, expected to be unveiled on April 2, have raised expectations of inflationary pressures across the economy, market pessimism is rife. US President Donald Trump signed an executive order imposing a 25% tariff on all auto imports into the United States. This has sparked global reactions, particularly in Canada and the European Union, which has begun preparing to retaliate.

Growing inflation fears stemming from the tariffs, rising recession fears, and the Federal Reserve's continued dovish stance remain supportive of gold. Geopolitical risks, weak business confidence, and political uncertainty continue to drive safe-haven demand. Unless economic data reveals a tangible improvement in the US economic situation, gold will continue to hit new record highs in the coming period.

Gold may experience a wave of decline due to profit-taking and price corrections, as every rise is followed by a decline, and then gold will continue its upward trend. Meanwhile, San Francisco Federal Reserve Bank member Mary Daly stated that she expects two interest rate cuts in 2025, adding recently that she is 100% focused on inflation given the steady pace of progress. Susan Collins of the Boston Fed sees a temporary uptick in inflation, while Alberto Musallam of the St. Louis Fed warned of continued price pressures, estimating that a full percentage point could be added to core inflation. Traders are increasingly factoring in these risks, with the latest PCE data showing a 0.4% monthly increase, slightly above expectations. The U.S. Bureau of Economic Analysis revealed that the personal consumption expenditures (PCE) price index rose 2.5% year-over-year in February. The core PCE index, which excludes food and energy, rose 2.8% year-over-year, slightly up from the upwardly revised 2.7% in the previous month. While these readings largely held steady, they indicate that inflation remains above the Federal Reserve's 2% target.

The University of Michigan Consumer Confidence Index fell to 57.0 from an initial 57.9, as American households grew more pessimistic.

One-year inflation expectations rose to 5%, while five-year inflation expectations rose to 4.1% from 3.9%, reflecting growing consumer concerns about future price pressures.

A CNBC survey conducted by the Council of Financial Directors showed that 60% of US financial managers now expect a recession by the end of the year, up from just 7% last quarter. Trade tensions top their concerns, followed by inflation and weak demand. Equity risk appetite is also declining, with only 35% of CFOs planning to increase capital spending, strengthening gold's role as a defensive asset. Meanwhile, markets are awaiting the Trump administration's implementation of global trade tariffs on Wednesday and the March nonfarm payrolls report on Friday, both of which analysts warn could boost gold's safe-haven appeal. Other key data releases include the ISM Manufacturing PMI and JOLTS job openings on Tuesday, the ADP Employment Index on Wednesday, and the ISM Services PMI and weekly jobless claims on Thursday.