Gold Prices Climb 1% This Week, Reaching a Record High

Gold prices in local and global markets recorded significant gains this week, driven by geopolitical tensions and weak economic data, despite some fluctuations.

After several days of volatility, the price of gold rose 1% by the end of the week, with the ounce peaking at an all-time high of $2,758 before retreating slightly to $2,747 at Friday’s close.

Locally, Saeed Embabi, CEO of iSagha, an online gold and jewelry trading platform, reported that gold prices fell by 7 EGP on Saturday compared to Friday’s close, with 21-karat gold trading at 3,735 EGP per gram. Other gold categories also saw adjustments, with 24-karat gold reaching 4,269 EGP per gram, 18-karat gold at 3,201 EGP, and 14-karat gold priced at 2,490 EGP. The gold pound (weighing 8 grams of 21-karat gold) was recorded at 29,880 EGP.

Gold prices fluctuated throughout the week, reflecting shifts in both local and global markets. On Friday, 21-karat gold opened at 3,735 EGP and rose slightly to 3,742 EGP by the end of the session. Meanwhile, the global market saw the ounce rise from $2,737 to $2,747, gaining $10 during the day’s trading. The week ended with the ounce recording a cumulative gain of $26, a 1% increase overall.

Gold experienced a brief correction after hitting the record high of $2,758 per ounce earlier in the week, driven by a strengthening U.S. dollar and rising U.S. Treasury yields, which pressured the metal. Profit-taking by investors after the record surge further contributed to the price decline.

Embabi noted that gold’s rally was initially supported by the People’s Bank of China’s decision to lower its one-year loan prime rate by 25 basis points, from 3.35% to 3.10%, easing concerns about China’s economic slowdown. Geopolitical instability also spurred safe-haven demand on Monday, pushing prices higher.

The upward momentum continued into Tuesday, with gold prices gaining 1% following weak economic data. However, rising Treasury yields and renewed dollar strength by Wednesday led to a 1.2% decline, reversing the earlier gains. The correction reflects market forces balancing safe-haven buying with concerns over U.S. financial conditions.