Gold prices in Egypt climbed by 3.3% during October, gaining EGP 170 per gram, while international gold prices rose 4%, supported by strong central-bank demand and ongoing geopolitical and economic uncertainty, according to a report from “Ay-Sagha,” a platform specializing in gold and jewelry trading.
Saeed Imbabi, CEO of Ay-Sagha, said the local market saw the price of 21-karat gold open the month at EGP 5,180, peak at EGP 5,900, and close at EGP 5,350. Meanwhile, global spot gold started October at $3,858 per ounce, touched $4,381, and settled at $4,003, up $145 month-on-month.
Imbabi noted that October witnessed historic and unprecedented increases in both domestic and global gold prices, driven by central-bank purchases and heightened uncertainty surrounding global economic and geopolitical developments, alongside the ongoing U.S. government shutdown.
On Saturday, domestic prices remained stable as international markets were closed for the weekend. Spot gold fell 2.7% during the week, pressured by a stronger dollar, profit-taking, and investors’ reassessment of the Federal Reserve’s monetary-policy path.
The 21-karat gram held at EGP 5,350, while the ounce dropped $111 to $4,003. The 24-karat gram stood at EGP 6,114, 18-karat at EGP 4,586, and 14-karat at EGP 3,567, with the gold pound coin steady at EGP 42,800.
Imbabi added that the global gold market weakened as traders digested the Fed’s recent rate cut. A rising dollar and steady Treasury yields capped bullion’s upside. Fed Chair Jerome Powell downplayed expectations of another rate cut in December, saying policy decisions would “remain data-dependent.”
Improved market sentiment also reduced safe-haven demand after a positive meeting between U.S. President Donald Trump and Chinese President Xi Jinping. The leaders agreed on a one-year trade truce until November 2026, including partial tariff reductions on fentanyl-related goods and U.S. agricultural products, as well as a delay in China’s planned rare-earth export controls.
Meanwhile, the U.S. government shutdown has entered its fifth week, delaying the release of key economic data and raising concerns about broader economic fallout.
Looking ahead, Imbabi expects gold prices to remain broadly stable with a slight downward bias in the short term, though the long-term outlook remains bullish amid persistent drivers such as central-bank demand and global uncertainty.
The U.S. Dollar Index hovered around 99.70 after hitting a three-month high on Thursday, while the 10-year Treasury yield climbed 30 basis points to 4.11%, its highest in three weeks.
According to the CME FedWatch Tool, the probability of a December rate cut of 25 basis points fell from 91.7% a week ago to 66.8%, reflecting a more cautious market stance following Powell’s remarks.
Upcoming U.S. economic indicators, including ISM manufacturing PMI, JOLTS job-openings data, ADP employment change, job-cut figures, University of Michigan consumer sentiment, and the New York Fed’s inflation expectations survey, are expected to offer fresh insights into labor-market trends and inflation outlook.
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