Gold prices rose by EGP 680 in local markets during the first quarter of 2025

Gold prices rose by approximately 18% in the local market during the first quarter of 2025, while the global ounce rose by 19%, recording its largest quarterly gain in 39 years. This was due to strong demand for gold as a safe haven amidst economic and geopolitical uncertainty.

Gold prices rose by EGP 565 in local markets during the first quarter of this year. A gram of 21-karat gold opened trading at the beginning of January at EGP 3,740, reached EGP 4,425, and closed trading at the end of March at EGP 4,420. Meanwhile, an ounce rose by approximately $502 in global markets during the first quarter, opening at $2,624, reaching a record high of $3,128 on March 31, and closing at EGP 3,126. Dollars.

A gram of 24-karat gold recorded 5,051 Egyptian pounds, a gram of 18-karat gold recorded 3,789 Egyptian pounds, a gram of 14-karat gold recorded approximately 2,947 Egyptian pounds, and the gold pound recorded approximately 35,360 Egyptian pounds.

Gold prices rose by 9%, or 370 Egyptian pounds, during March. The price of a gram of 21-karat gold opened at 4,050 Egyptian pounds and closed at 4,420 Egyptian pounds. Meanwhile, the price of an ounce on the global stock exchange rose by 9.4%, or 268 Egyptian pounds, opening at 2,858 Egyptian pounds and closing at 3,126 Egyptian pounds.

Gold prices reached an all-time high of 3,128 Egyptian pounds, driven by high demand due to growing concerns about continued inflation, uncertainty regarding global trade, and escalating geopolitical tensions. This prompted investors to turn to gold as a hedge. This latest price increase comes as the US administration prepares to implement new tariffs on various products from several countries, including Canada and Mexico, the United States' two largest trading partners. President Trump has designated April 2 "Liberation Day."

With ongoing geopolitical tensions and economic uncertainty, gold's appeal as a safe haven is growing, paving the way for further gains in the coming months. Investors are increasingly concerned about the potential impact of Donald Trump's tariffs, fearing that these policies could lead to lower growth, higher inflation, a decline in international trade, and a weakening of the global order's predictability.

The threat of US retaliation and global supply disruptions have heightened concerns about inflation and slowing growth, conditions that have historically driven gold prices higher. This move comes as the MSCI World Index fell 1.2%, reflecting a shift from risk assets to safe havens. The dollar remains under pressure, as concerns about a slowing US economy fuel expectations that the Federal Reserve will soon begin cutting interest rates again. Markets are increasingly anticipating further rate cuts in the near future.

Last week, analysts from Goldman Sachs, Société Générale, and Bank of America raised their price forecasts, setting $3,300 as the next key target by the end of the year.

Meanwhile, China's four largest insurance companies, which manage combined assets worth 13 trillion yuan, launched a pilot gold purchase program, with expected inflows equivalent to 183 tons, representing nearly half of global central bank purchases last year. This strategic shift reflects a deeper institutional orientation toward gold as a hedge against inflation and a counterweight to geopolitical risks. Along with steady demand from investment funds and continued accumulation by central banks, this institutional wave provides strong support for the rally. 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.