Gold Prices Rise By EGP 315 In Week

Gold prices rose in local markets by 7.3% during trading in the week ending Saturday evening, while the ounce rose by 6.6% during trading in the week ending Friday evening. This was due to the escalation of the trade war between the United States and China and growing bets on a cut in US interest rates.

Gold prices rose in local markets by EGP 315 during trading last week. A gram of 21-karat gold opened trading at EGP 4,350, touched EGP 4,710, and closed trading at EGP 4,665. An ounce rose by $200, opening trading at $3,038 and reaching $3,248, its highest level in history, on Friday, April 11. Trading ended at $3,238. The price of a gram of 24-karat gold reached EGP 5,331, while the price of a gram of 18-karat gold reached EGP 3,999. The price of a gram of 14-karat gold reached approximately EGP 3,110, and the gold pound reached approximately EGP 37,320.

According to the daily report of the "iSaaga" platform, gold prices in local markets fell by approximately EGP 35 during trading yesterday, Saturday. The price of a gram of 21-karat gold opened at EGP 4,700, touched EGP 4,010, and closed at EGP 4,665, coinciding with the weekly global stock exchange holiday.

Gold prices in local markets witnessed unprecedented increases during trading last week, with the price of 21-karat gold—the most widely traded in the local market—reaching an all-time high of EGP 4,710. This was due to the rise in the ounce price on the global stock exchange and the decline in the Egyptian pound against the dollar, amid improved local demand. He added that gold prices are still unstable, and therefore, we must wait for the markets to stabilize.

Gold prices on the global stock exchange witnessed sharp increases over the past week, driven by increased demand stemming from the trade dispute between the United States and China, amid growing bets on a Federal Reserve interest rate cut.

He added that the economic uncertainty and chaos caused by the arbitrary decisions of US President Donald Trump have prompted investors to lose confidence in the US administration, thus abandoning the dollar and exposing it to collapse.

Investors' turn to gold is an economic necessity and a means of preserving the value of money, in light of the anticipated and imminent collapse of the US economy, according to analysts and international institutions.

China announced the imposition of 125% tariffs on US goods, effective Saturday, in response to the United States' imposition of severe tariffs on Chinese imports. The new 125% tax is added to the existing 20% ​​tariff, bringing the total tariff to 145%.

On Wednesday, President Trump announced a 90-day temporary suspension of new tariffs on most US trading partners. The University of Michigan's Consumer Confidence Index showed a significant decline in April, falling from 57.0 to 50.8, indicating growing pessimism among households. Inflation expectations rose sharply, with the annual forecast jumping from 5% to 6.7%, and the annual forecast from 4.1% to 4.4%. The US Producer Price Index (PPI) for March also fell to 2.7% year-over-year, down from 3.2% and below expectations of 3.3%, indicating easing input cost pressures. However, the core PPI—which excludes food and energy—remained above 3%, recording 3.3% year-over-year, down from 3.5% in February. The US Consumer Price Index (CPI) showed headline inflation declining to 2.4% year-on-year, below expectations of 2.6% and down from 2.8% in February. Core CPI, which excludes food and energy prices, rose 2.8%, also exceeding expectations. On a monthly basis, the headline CPI fell 0.1%, while the core CPI rose 0.1%.

Recession fears have increased, according to Goldman Sachs, which said the probability of a recession has risen from 35% to 45% within 12 months.

The minutes of the US Federal Reserve's meeting last month showed that policymakers were almost unanimous in their view that the US economy faces risks of slowing growth and accelerating inflation at the same time.

UBS expects gold to continue rising, targeting a level between $3,400 and $3,500. As long as uncertainty persists, demand for the yellow metal is likely to remain strong.