Gold prices in the local market recorded strong gains during January, despite a wave of severe declines in the final days of the month, according to a report issued by the iSagha platform.
Eng. Saeed Embaby, CEO of the platform, said that domestic gold prices rose by 17% during January, posting an increase of EGP 995 per gram for 21-karat gold. Prices opened the month at EGP 5,830 per gram, touched a record high of EGP 7,550, before closing the month at EGP 6,825.
Globally, ounce prices rose by 13.4%, gaining $577. Gold started January trading at $4,318 per ounce, hit a peak of $5,605, and ended the month at $4,895.
Embaby noted that the local market recorded a weekly increase of 1.3% last week, despite a 1.9% decline in global gold prices, amid unprecedented market volatility.
He added that the price of 21-karat gold rose by about EGP 90 in a single week, while the global ounce lost around $93.
According to the report, the price of 24-karat gold reached about EGP 7,800 per gram, 18-karat gold stood near EGP 5,850, while the gold pound (8 grams of 21-karat) reached around EGP 54,600.
The local market recorded its largest daily loss on record last Friday, amounting to nearly EGP 600 per gram, coinciding with a sharp global selloff in gold exceeding $510 per ounce.
Regarding pricing differentials, Embaby explained that local prices remain higher than global equivalents by as much as EGP 405. He attributed this gap to the intensity and speed of global price swings, in addition to physical deliveries and strong demand, which made it difficult for some market participants to keep pace with real-time price movements. He stressed that the platform will transparently clarify any unjustified pricing gaps to the public.
He pointed out that the gold market is not suffering from a shortage of raw material; however, demand exceeds factories’ production capacity, placing pressure on the market.
By contrast, the silver market faces two simultaneous challenges: a shortage of raw material and factories’ inability to meet rising demand, making it more vulnerable to volatility.
Embaby confirmed that iSagha continued pricing and trading throughout the crisis without interruption, unlike some applications that suspended activity, leading to the freezing of investors’ funds.
He added that the platform did not cancel any orders and allowed clients the option to cancel in the event of price declines, reflecting its commitment to professionalism and transparency.
He emphasized that sharp pullbacks do not signal the end of the uptrend, expecting gold to resume its rise after a period of relative calm. He advised those who bought at high levels to hold their positions to offset losses, given the continued positive outlook through year-end.
Globally, the sharp decline came after U.S. President Donald Trump announced the nomination of Kevin Warsh as Chair of the Federal Reserve, strengthening the U.S. dollar and pushing up Treasury yields.
The dollar index rose by 0.74% to 96.87 points, while the yield on 10-year U.S. Treasuries climbed to 4.247%.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, said that the strong rallies in gold and silver during January made trading conditions more challenging, reduced liquidity, and widened bid-ask spreads. He described the current selloff as a “healthy correction” within a long-term upward trend.
Analysts stressed that the fundamental drivers supporting gold remain strong, led by rising global debt, declining confidence in the U.S. dollar, and persistent geopolitical risks. They noted that any price pullbacks represent new buying opportunities, with expectations that the upward trend in precious metals will continue in the coming period and extend into 2026.
Markets are awaiting a series of U.S. economic data releases and major central bank meetings next week, which could play a decisive role in shaping the trajectory of gold and precious metal prices.
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