Gold prices rose in local markets and on the global exchange during mid-session trading on Tuesday, supported by traders’ reactions to the latest U.S. inflation data, according to a report issued by the iSagha platform.
Saeed Embabi, Executive Director of iSagha, said gold prices in the local market increased by about EGP 40, with 21-carat gold reaching EGP 6,130 per gram. Globally, gold prices climbed by around $34, with the ounce trading at $4,630.
He added that 24-carat gold recorded about EGP 7,017 per gram, 18-carat gold stood at roughly EGP 5,263, while the gold pound rose to nearly EGP 49,120.
Gold edged higher on Tuesday as traders reacted to the latest U.S. inflation figures. Data released by the U.S. Bureau of Labor Statistics showed that headline consumer price inflation came largely in line with expectations, while core inflation was weaker than forecast, reinforcing expectations that the Federal Reserve may continue moving toward further monetary easing.
Gold continues to be supported by strong safe-haven demand amid persistent global geopolitical and economic uncertainty. Markets remain influenced by criminal investigations involving Federal Reserve Chair Jerome Powell, which have revived concerns over the independence of the U.S. central bank.
Risk sentiment has also come under pressure after U.S. President Donald Trump threatened to impose a 25% tariff on countries that maintain trade relations with Iran, amid domestic anti-government protests. This followed earlier U.S. actions in Venezuela, as well as renewed statements by Trump regarding strategic interests in Greenland.
The U.S. Department of Justice has issued subpoenas to a grand jury as part of a criminal investigation into Jerome Powell, related to his testimony before the Senate concerning the $2.5 billion Federal Reserve headquarters renovation project. This has further heightened concerns over the independence of monetary policy. Powell, however, has stated that the Federal Reserve will continue to set policy based on economic conditions rather than political pressure.
Markets are also awaiting an announcement later this month regarding a potential nominee to succeed Powell, whose term as Fed Chair ends in May 2026. Expectations that the nominee could be closer to the White House’s political views have added to uncertainty over the future direction of U.S. monetary policy.
On the monetary policy front, markets are currently pricing in two potential interest rate cuts this year. However, recent U.S. employment data showed the labor market holding up better than many had feared, easing expectations of aggressive monetary easing and strengthening the case for keeping interest rates unchanged at the Federal Reserve’s January meeting.
Attention is also turning to the U.S. Supreme Court, which is scheduled to hold a hearing this week to consider the legality of tariffs imposed by Trump, in addition to a separate hearing on January 21 regarding an attempt to remove Federal Reserve Governor Lisa Cook.
Despite ongoing volatility, major investment banks remain broadly optimistic about gold’s outlook. Institutions including Bank of America, JPMorgan, Goldman Sachs, Morgan Stanley, and UBS expect prices to trade in a range of $4,500 to $5,000 per ounce through 2026, supported by expected rate cuts, rising debt concerns, continued purchases by central banks and exchange-traded funds, and persistent geopolitical uncertainty.
In a related development, CME Group, the operator of the Chicago exchange, has implemented a major change to the way trading margins are calculated for precious metals futures following recent record price gains. The exchange has shifted from fixed dollar-based margins to a percentage-based system tied to the notional value of contracts.
The new system took effect after Tuesday’s close and applies to gold, silver, platinum, and palladium contracts. It allows margin requirements to adjust automatically with price movements, reducing the need for frequent manual changes during the heightened volatility currently seen in precious metals markets.
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