Gold Breaks $2,700 as Markets Eye US Interest Rate Cuts

Gold prices surged on Thursday, breaking the $2,700-per-ounce barrier in global markets, fueled by mounting expectations of interest rate cuts by the US Federal Reserve in 2025.

This historic milestone reflects increasing market anticipation of monetary easing following key US economic indicators, including rising unemployment rates and the latest consumption index data.

According to Saeed Embabi, Executive Director of the iSagha platform for gold and jewelry trading, gold prices in local markets rose by approximately EGP 15 during Thursday’s trading, compared to the previous day’s close. The price of 21-karat gold, the most popular in Egypt, reached EGP 3,805 per gram, while the global price of gold rose by $17, hitting $2,714 per ounce.

In the local market, 24-karat gold was priced at EGP 4,349 per gram, 18-karat gold at EGP 3,261, and 14-karat gold at EGP 2,537 per gram. The price of the gold pound coin increased to EGP 30,440.

The iSagha daily report highlighted that local gold prices had already risen by EGP 20 during Wednesday’s trading. At the start of the day, 21-karat gold was priced at EGP 3,770 per gram and closed at EGP 3,790. Simultaneously, global gold prices climbed by $21 per ounce, opening at $2,676 and closing at $2,697.

Embabi noted that global gold prices maintained their upward momentum, with the ounce surpassing the $2,700 mark. This surge comes as investors increasingly anticipate the Federal Reserve’s decision to cut interest rates in response to economic challenges, reinforcing gold’s position as a safe-haven asset during times of uncertainty.