Gold Prices Jump by EGP 120 After Israeli Strikes on Iran

Gold prices surged in both local and global markets during Friday’s trading session, driven by strong demand for safe-haven assets following major Israeli airstrikes on Iranian targets overnight.

In Egypt’s local market, gold prices soared by EGP 120, with the price of 21-karat gold hitting EGP 4,850 per gram. On the international front, gold rose by $63 per ounce, reaching $3,446.

Other local gold prices were also on the rise: 24-karat gold recorded EGP 5,543 per gram, 18-karat stood at EGP 4,157, and 14-karat at EGP 3,234. The price of the gold pound climbed to EGP 38,800.

It’s worth noting that gold prices had already risen by EGP 55 during Thursday’s session, with 21-karat gold opening at EGP 4,675 and closing at EGP 4,730. Internationally, gold gained $30 on Thursday, moving from $3,353 to $3,383 per ounce.

This jump in gold prices came as no surprise, fueled by a rush for safe havens amid growing fears that escalating tensions in the Middle East could spiral into a wider regional conflict. Gold wasn’t the only beneficiary — silver also saw gains, albeit more moderately — while oil prices spiked more than 7%, amid mounting concerns over potential disruptions to energy supplies through the Strait of Hormuz.

As trading floors heated up with buy orders, reports began circulating in the media about the deaths of several senior Iranian generals and nuclear officials, causing what was described as a paralysis in Tehran’s command structure. Meanwhile, Israel announced that it was preparing for additional rounds of military strikes, further intensifying market anxiety.

Former U.S. President Donald Trump made a striking statement on his Truth Social platform, declaring, “They’re all dead now… the situation will only get worse!” He went on to urge Iran to “make a deal before nothing is left of what was once the Persian Empire.”

From a macroeconomic perspective, these movements are taking place in an increasingly accommodative U.S. monetary environment. This week’s Producer Price Index (PPI) data pointed to a slowdown in inflation, reinforcing expectations that the Federal Reserve might cut interest rates in September. The core PPI slowed to 3% in May, down from 3.2% in April, while the Consumer Price Index (CPI) also reflected a similar easing — reducing fears of a renewed tightening cycle.

Central banks around the world are not standing on the sidelines. Estimates suggest that global central bank gold purchases may exceed 1,000 tonnes in 2025 — a clear signal of a structural shift in reserve management strategies.

Silver, for its part, has maintained its role as a rising defensive asset. Despite a slight dip today, it has posted its best multi-month performance since 2012, buoyed by dual demand drivers: safe-haven investment and robust industrial usage, particularly from the renewable energy and electric vehicle sectors.

All in all, gold and silver are reasserting themselves not merely as ornamental or savings instruments, but as real-time barometers of global sentiment. As the world recalibrates its risk pricing, safe-haven assets are once again taking center stage in investment decision-making — at a time when stability is desperately sought in the midst of geopolitical storms.