Gold Prices Rise Globally and Locally as Safe-Haven Demand Grows Amid Market Turmoil

Gold prices recorded notable gains in mid-trading on Wednesday, supported by increased demand for safe-haven assets as global equity markets continue to fluctuate amid growing concerns of overvaluation in U.S. stocks and a potential bubble in artificial intelligence shares, according to a report issued by Ai Sagha, the gold and jewelry trading platform.

Saeed Embabi, CEO of the platform, said that domestic gold prices rose by EGP 45 today, with 21-karat gold reaching EGP 5,305 per gram, while the global ounce gained $52, to trade at $3,984.

He added that 24-karat gold recorded EGP 6,063, 18-karat gold reached EGP 4,547, while the gold pound coin stabilized at EGP 42,440.

Global Stocks Slump, Boosting Gold’s Appeal

The precious metal’s rally came on the back of a broad risk-off sentiment in global markets, as U.S. and international equity indices posted mixed-to-negative performance amid renewed fears of a correction in technology and AI-related stocks.

Warnings from top Wall Street executives about stretched valuations have intensified sell-offs, extending declines into both Asian and European markets.

Adding to the cautious tone, the U.S. government shutdown entered its 36th day, marking the longest in history and delaying the release of key economic data. Analysts estimate the shutdown costs the U.S. economy between $10 billion and $30 billion per week, potentially shaving up to two percentage points off fourth-quarter GDP growth, according to the Congressional Budget Office.

Dollar Strengthens on Robust Jobs Data

Meanwhile, the U.S. Dollar Index (DXY) climbed to 100.30—its highest level since May—supported by stronger-than-expected ADP employment data, which showed an increase of 42,000 private-sector jobs in October, surpassing forecasts.

Traders are now awaiting the release of the ISM Services PMI for further clues about the health of the U.S. economy and its implications for the Federal Reserve’s policy outlook in December.

According to the CME FedWatch Tool, market expectations for a rate cut in December have dropped to 68%, down from 94% before Fed Chair Jerome Powell stated that “further monetary easing this year is not a given.”

Trade Tensions Ease Between Washington and Beijing

In a separate development, U.S. President Donald Trump signed two executive orders aimed at easing trade tensions with China. The measures include cutting tariffs on fentanyl-related imports from 20% to 10%, effective November 10, while extending the 10% tariff rate on other Chinese goods for another year. In response, Beijing temporarily lifted some retaliatory tariffs on U.S. agricultural and industrial products.

Meanwhile, the U.S. Supreme Court is set to hear arguments Wednesday on the legality of Trump’s use of emergency powers to impose sweeping tariffs—an issue that could redefine the scope of presidential authority over trade policy.

Cambodia to Store Gold in China

In a move underscoring Beijing’s ambitions to become a global bullion hub, Bloomberg reported that Cambodia plans to store part of its gold reserves in a vault registered with the Shanghai Gold Exchange in the Shenzhen free trade zone. Sources indicated that other nations are exploring similar steps to diversify their reserves away from traditional centers like London.

Gold continues to benefit from global uncertainty and risk aversion, though its upside remains capped by the strength of the U.S. dollar and the ambiguity surrounding the Fed’s monetary policy. With ongoing trade developments and the prolonged U.S. government shutdown, the yellow metal retains its strategic position as a defensive asset for investors seeking stability in turbulent markets.