Gold prices rose in the local market on Saturday, despite the global exchanges being closed for the weekend, after the metal ended the week with strong gains of 2.3%, hitting a four-month high. The rally came amid mounting expectations that the U.S. Federal Reserve will cut interest rates in September.
In local markets, gold gained about 5 Egyptian pounds during today’s trading compared to Friday’s close, with 21-carat gold reaching 4,690 pounds per gram. Globally, spot gold ended the week up $76, closing at $3,447 an ounce.
Other local prices stood at 5,360 pounds for 24-carat, 4,030 pounds for 18-carat, and 3,127 pounds for 14-carat gold, while the gold pound coin held steady at 37,520 pounds.
On Friday, local gold had already risen by 35 pounds, with 21-carat gold opening at 4,650 pounds and closing at 4,685. At the same time, spot gold rose $25, from $3,422 to $3,447.
On a broader scale, global gold prices posted gains of 4.7%, or $156, during August, while locally 21-carat gold advanced 3.8%, or 170 pounds, in the same period.
Drivers of the Rally
According to gold market analyst Said Embabi, the latest gains were driven by growing demand for safe-haven assets amid persistent geopolitical and economic uncertainty, alongside expectations of a Fed rate cut.
He added that concerns about the Federal Reserve’s independence have boosted investor appetite for gold, noting that any short-term pullbacks should be seen as buying opportunities.
Powell Signals Policy Shift
In his speech at the Jackson Hole Symposium on Friday, Fed Chair Jerome Powell said that “imbalances in economic risks may call for an adjustment in monetary policy,” signaling a greater focus on slowing growth and labor market weakness rather than tightening further to reach the 2% inflation goal.
U.S. Commerce Department data showed the Fed’s preferred inflation gauge, the core PCE price index, rising 2.9% year-on-year in July, while personal spending grew 0.5%, beating expectations. These figures reinforced market conviction that a September rate cut is almost guaranteed.
Jobs Data in Focus
Bill Adams, Chief Economist at Comerica Bank, said next Friday’s nonfarm payrolls report will be a turning point for gold prices. Weak hiring would increase the odds of a September rate cut. Comerica expects just 45,000 new jobs, with unemployment steady at 4.2%.
Politics and Gold
Politics remain a key factor. President Donald Trump continues to pressure the Fed, seeking to dismiss Governor Lisa Cook. Despite legal challenges, analysts argue the central bank’s independence has already been undermined.
Meanwhile, geopolitical tensions are weighing on markets, particularly after U.S.-Russia diplomacy over Ukraine stalled and Russian strikes on Kyiv escalated—further bolstering gold’s role as a safe haven.
Fed Outlook
Fed Governor Christopher Waller said he supports a 25-basis-point cut in September, with the possibility of an additional 125–150 bps of easing in the coming months. He stressed that jobs data will remain the key driver of policy decisions.
Key Economic Data to Watch (Next Week):
Monday: Labor Day holiday – North American markets closed
Tuesday: ISM Manufacturing PMI
Wednesday: JOLTS job openings
Thursday: ADP employment report, jobless claims, ISM Services PMI
Friday: Nonfarm payrolls (NFP)
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