Gold markets return to the parallel dollar, and the gap between the local and global exchange rates exceeds 60 Egyptian pounds.

Gold prices in local markets witnessed a state of stability during trading today, Saturday, coinciding with the weekly global stock market holiday. The ounce experienced sharp fluctuations during trading this week, reversing the gains it had achieved due to investors selling to cover losses from the stock market collapse. President Donald Trump's tariffs destabilized global trade and increased fears of an economic recession.

Gold prices witnessed a state of stability during trading today, compared to the closing price of 21-karat gold, which settled at 4,375 Egyptian pounds per gram. However, the ounce ended the week's trading down 1.5%, or about $47, to $3,038, after touching its all-time high of $3,168 on Thursday, April 3, ending a five-week winning streak. The precious metal also fell about 4.2% from its all-time high recorded last Thursday. The price of a gram of 24-karat gold reached 5,000 Egyptian pounds, while the price of a gram of 18-karat gold reached 3,750 Egyptian pounds. The price of a gram of 14-karat gold reached approximately 2,917 Egyptian pounds, and the gold pound reached approximately 35,000 Egyptian pounds.

Gold prices in local markets fell by approximately 50 Egyptian pounds during trading on Friday. The price of a gram of 21-karat gold opened at 4,425 Egyptian pounds and closed at 4,375 Egyptian pounds. Meanwhile, the price of an ounce on the global stock exchange fell by $98, opening at $3,135 and closing at $3,037.

The turmoil in global markets has prompted local raw gold traders to price gold based on the Egyptian dollar, with the gram trading at approximately 61 Egyptian pounds higher than on the global stock exchange. This is intended to avoid sharp market fluctuations. The dollar exchange rate at the Central Bank of Egypt (CBE) was around 50.58 Egyptian pounds, while the goldsmiths' dollar exchange rate was around 51.20 Egyptian pounds.

Gold prices in recent months have been based on a lower dollar rate than the official rate, due to declining demand and the local market's shift toward exports to secure liquidity due to extensive resale operations.

The current time is ideal for resale, taking advantage of the price gap between the local and global markets. Buying amidst the waves of ups and downs is not recommended until prices stabilize.

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 dollars. Gold also recorded its best quarterly performance in 39 years.

The recent escalation in global trade tensions, driven by the comprehensive tariffs announced by US President Donald Trump, has destabilized global trade and threatened to trigger a global economic recession. Gold continues to serve as a hedge, despite its weekly decline, but it continues to outperform stock markets.

Federal Reserve Chairman Jerome Powell warned on Friday that inflation could rise again due to the broad tariffs imposed by President Donald Trump, indicating the possibility of it remaining at elevated levels for an extended period.

Powell said in press statements: "We face a highly uncertain economic outlook, with elevated risks related to increased unemployment and inflation. While tariffs are likely to lead to a temporary spike in inflation, their effects could also be more lasting."

The US tariffs and the escalating trade war they sparked have led to the largest disruption to the global supply chain since the world was forced to shut down due to the COVID-19 pandemic and represent the largest disruption to global trade in 100 years.

Stock markets have experienced sharp declines as investors are forced to reduce their investments in the face of slowing economic activity and rising inflation. The factors that pushed gold prices above $3,000 per ounce remain in place. Ongoing uncertainty, trade wars, central bank policies, and geopolitical risks are all supporting factors. Weak US stock markets will also support gold as an important risk hedge.

Donald Trump exempted precious metals from tariffs, making the increased stockpiles in New York vaults unnecessary. Gold inventories on the Comex have increased by 720 tons since the beginning of the year, and this additional demand is likely to stop now, or at least decline significantly in the future.

While the nonfarm payrolls report revealed the addition of 228,000 new jobs in March, and the unemployment rate rose to 4.2%, the imposition of new tariffs is raising concerns about slowing industrial activity and supply chain disruptions, introducing renewed volatility into commodity prices.

The strength of the labor market suggests that the Federal Reserve may not cut interest rates immediately, but it will not resort to monetary tightening. This moderate stance will put gold on a safe path in the medium term. 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 this week.