Gold prices surged in both local Egyptian markets and global exchanges during Monday’s trading, supported by a weaker U.S. dollar and lower Treasury yields, as investors awaited key U.S. jobs data for signals on the Federal Reserve’s monetary policy path, according to a report by ISaga.
Saeed Empabi, CEO of the platform, said gold prices in the local market rose by around EGP 45, bringing the 21-carat gold gram to EGP 5,790, while the global ounce increased by approximately $41 to $4,340.
He added that the 24-carat gold gram reached about EGP 6,617, the 18-carat gram was around EGP 4,963, and the gold pound stood at EGP 46,320.
Empabi noted that local gold prices had gained roughly EGP 130 last week, with 21-carat gold opening at EGP 5,615 and closing at EGP 5,745, while the global ounce rose nearly $100, from $4,199 to around $4,299.
Globally, gold continued its rally, driven by the dollar weakening to near a two-month low, which increased the appeal of the metal to foreign investors, along with lower U.S. 10-year Treasury yields. Gold prices have surged about 64% since the beginning of the year.
Markets are now focused on the upcoming U.S. non-farm payrolls report, as any signs of a slowing labor market could keep short-term Treasury yields low and weigh on the dollar, supporting gold as a safe-haven asset.
The Federal Reserve’s monetary policy outlook remains a key focus, especially after last week’s 25-basis-point interest rate cut, a rare split decision, amid persistent inflationary pressures and an unclear labor market picture. Some Fed officials opposed further easing, arguing that inflation remains too high for additional cuts. Markets currently price in two potential rate cuts next year, with the jobs report serving as a crucial test for these expectations.
Gold typically benefits in a low-interest-rate environment, as it does not generate yield. In this context, ANZ Bank noted in a research memo that India’s recent decision allowing pension funds to invest in gold and silver ETFs may boost institutional participation, strengthen investor confidence, and support greater allocations to gold in investment portfolios.
Gold rose to a seven-week high, approaching $4,350 during early European trading on Monday, driven by expectations of U.S. rate cuts next year and increasing safe-haven demand amid market uncertainty.
However, hawkish statements from some Fed officials could pressure gold prices by strengthening the dollar. Investors are closely watching remarks from Stephen Miran, Fed Governor, and John Williams, President of the New York Fed, later today.
The market also anticipates the U.S. employment report for October and November, including non-farm payrolls, average hourly earnings, and the unemployment rate, which could significantly impact Fed policy expectations.
Last week, the Fed announced its third rate cut of the year, bringing the target range to 3.50% – 3.75%, with Chair Jerome Powell stating that monetary policy is now in a position to “wait and watch” economic developments before making further decisions.
According to the CME FedWatch Tool, markets currently estimate a 76% probability that the Fed will hold rates steady in the January 2026 meeting.
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