Gold Prices Rise by 200 EGP in Local Markets over the Week

Gold prices in local markets rose by 5% during last week’s trading, while the ounce gained 3.7% on the global exchange, reaching its highest level in two weeks, driven by increased demand amid growing expectations of a Federal Reserve interest rate cut next month, according to a report from I Sagha, a platform for gold and jewelry trading.

Saeed Embabi, the platform’s CEO, said that local gold prices increased by approximately 200 EGP during the week, with 21-carat gold opening at 5,450 EGP and closing at 5,650 EGP. The ounce on the global exchange rose by around $151, opening at $4,065 and closing at $4,216. The price of 24-carat gold reached 6,457 EGP, 18-carat gold stood at 4,843 EGP, while the gold pound remained at 45,200 EGP.

This performance is attributed to rising demand in both local and international markets, supported by expectations of a Federal Reserve rate cut next month, which is encouraging investors to turn to non-yielding assets such as gold.

Market expectations now indicate an 89% probability of a rate cut at the December 9–10 meeting, up from 50% last week, following cautious remarks by Federal Reserve officials, including Chair Christopher Waller and New York Fed President John Williams, as well as weak economic data after the U.S. government shutdown.

U.S. economic indicators were mixed. The Producer Price Index showed inflation in the production sector stabilizing at 2.7% after two higher readings, while the labor market remained robust, according to initial jobless claims data. The U.S. dollar index (DXY) fell by 0.04% to 99.49, while the 10-year Treasury yield rose to 4.023%, and real yields increased to 1.785%—all indicators that directly affect gold prices.

Internationally, gold demand in major Asian markets declined due to rising prices, including during India’s wedding season, while consumer purchases in China fell after the removal of a tax exemption, with exports of physical gold from Hong Kong to China also decreasing.

Meanwhile, a recent survey by Goldman Sachs, which included over 900 institutional clients on the “Markit” platform, showed broad optimism about gold reaching record levels of $5,000 per ounce by the end of 2026. According to the survey, 36% of participants—the largest segment—expect gold to exceed this level, while another 33% foresee prices ranging between $4,500 and $5,000, amid a strong rise of 58.6% since the beginning of 2025, surpassing $4,000 per ounce for the first time in October.

Goldman Sachs’ analysis note indicated that an upside scenario could push prices to $5,000 if inflationary pressures persist or monetary policies shift in a way that boosts the value of the precious metal, while the baseline scenario expects gold to reach around $4,000 by mid-2026. Other financial institutions, including Bank of America, have supported expectations of gold reaching this milestone next year.

This rise is expected to have a direct impact on the jewelry industry, increasing the cost of raw gold and reflecting on the final product prices. Additionally, institutional investors are expected to increase allocations toward gold and related investment funds.

Investors will next watch the release of November’s manufacturing and services Purchasing Managers’ Index (PMI) from the Institute for Supply Management (ISM), industrial production, employment changes from ADP, and initial jobless claims for the week ending November 29, all of which may influence gold’s trajectory in the coming period.