Gold prices rose in local markets during trading on Monday, while the global stock exchange witnessed fluctuations, affected by market turmoil and fears of a global trade war.
Gold prices rose in local markets by about EGP 50 during today's trading compared to the closing price of the week last Saturday evening. The price of a gram of 21-karat gold reached EGP 4,400, while an ounce fell by about $9, reaching $3,029.
A gram of 24-karat gold reached EGP 5,029, a gram of 18-karat gold reached EGP 3,771, while a gram of 14-karat gold reached about EGP 2,934, and the gold pound reached about EGP 35,200.
According to the weekly report of the "iSaaga" platform, gold prices in local markets fell by approximately EGP 35 during last week's trading. The price of a gram of 21-karat gold opened at EGP 4,385, reached EGP 4,445, and closed at EGP 4,350. Meanwhile, the ounce on the global stock exchange fell by $47, opening at $3,085 and reaching $3,168 on Thursday, April 3, its highest level in history. Trading ended at $3,038.
The "iSaaga" platform indicated in its daily report last Thursday that gold was priced at a dollar higher than the official price, and subsequently traded at prices higher than the ounce price on the global stock exchange. This occurred prior to the dollar exchange rate's movements on Sunday, which reached approximately EGP 51.70.
Meanwhile, the rise in the dollar exchange rate on the local market led to an increase in gold prices despite the decline in the ounce price on the global stock exchange. The price of gold depends on three factors: the dollar exchange rate, the price of an ounce on the global stock exchange, and supply and demand.
The dollar exchange rate is stronger than the global stock exchange. A one-pound rise in the dollar price increases gold by approximately 85 Egyptian pounds, while a $10 rise in gold increases the price by approximately 14.5 Egyptian pounds.
Gold markets suspended pricing at the start of trading due to the severe volatility in gold prices on the global stock exchange. An ounce fell below $3,000 before rebounding to reach $3,040.
Gold prices rose in local markets by 18%, reaching 680 Egyptian pounds during the first quarter of 2025, while they rose on the global stock exchange by 19%, reaching $502. Gold also recorded its best quarterly performance in 39 years, supported by central bank purchases, exchange-traded fund inflows, and safe-haven demand. The tariffs announced by US President Donald Trump have destabilized global trade, amid fears of a global economic recession. Global stock markets collapsed, pushing investors toward gold for liquidity, halting the price rally.
The factors that pushed gold prices above $3,000 per ounce remain in place. Uncertainty persists, as do trade wars, central bank policies, and geopolitical risks. Weak US stock markets will also support gold as an important risk hedge.
Meanwhile, US President Donald Trump said on Monday that the Federal Reserve should cut interest rates.
"The slow-moving Federal Reserve should cut rates," Trump wrote on his social media platform, Truth Social. Despite the decline in gold prices, they remain supported by continued purchases by central banks and growing recession fears. China's central bank, the People's Bank of China, boosted its gold reserves for the fifth consecutive month in March, reinforcing its bet on the precious metal as a safe haven amid escalating global trade and geopolitical turmoil. The People's Bank of China's gold reserves rose by 0.09 million ounces last month, according to data released Monday. The central bank's latest buying campaign began in November, following a six-month pause following an 18-month buying spree, according to Bloomberg.
Deutsche Bank raised its year-end gold price forecast to $3,350, citing recession risks and strong safe-haven demand.
In a related development, markets are awaiting the minutes of the Federal Open Market Committee's March meeting on Wednesday, the US consumer price index on Thursday, and the US producer price index on Friday.
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