Gold Prices Rise Locally and Globally on Monetary Easing Expectations and Escalating Geopolitical Risks

Gold prices rose in both local and global markets during Wednesday’s trading, driven by U.S. employment data that reinforced expectations the Federal Reserve will continue pursuing a monetary easing policy, alongside a renewed escalation in geopolitical risks, according to a report by the iSagha platform.

Saeed Embaby, Executive Director of iSagha, said gold prices in the local market increased by around EGP 30 per gram, with 21-karat gold reaching EGP 5,780 per gram, in tandem with a rise in global gold prices, as the ounce climbed by about $12 to $4,317.

He added that 24-karat gold was priced at around EGP 6,594 per gram, while 18-karat gold reached EGP 4,946 per gram. The gold pound recorded approximately EGP 46,160.

The report noted that gold prices received support from stronger global demand amid growing concerns about a slowdown in the U.S. labor market, which strengthened investor bets that the Federal Reserve will maintain a more accommodative monetary stance in the coming period.

Market expectations are increasingly tilted toward further monetary easing in 2026, particularly after delayed U.S. jobs data released on Tuesday revived concerns over labor market weakness. Investors are now awaiting the release of the U.S. Consumer Price Index (CPI) on Thursday to assess the inflation outlook.

With the U.S. economic calendar relatively light on Wednesday, investors are closely monitoring comments from key members of the Federal Open Market Committee for clearer signals on the direction of monetary policy in the year ahead.

Data from the U.S. Bureau of Labor Statistics showed that the U.S. economy added 64,000 jobs in November, beating market expectations of 50,000 jobs, following a loss of 105,000 jobs in October due to the government shutdown. Meanwhile, the unemployment rate rose to 4.6%, above expectations of 4.4%, marking its highest level since September 2021.

The report also showed downward revisions to U.S. employment data by about 33,000 jobs for August and September, in line with warnings from Federal Reserve Chair Jerome Powell that job gains since April may have been overstated by around 60,000 jobs.

Overall, employment data point to a continued slowdown in the U.S. labor market, with weaker job creation, rising unemployment, and slowing wage growth. These trends provide the Federal Reserve with greater room to ease monetary policy, as markets currently expect two interest rate cuts next year.

On the geopolitical front, tensions have returned to the spotlight after new developments overshadowed earlier optimism surrounding U.S.-led Russia–Ukraine peace talks. Reports indicated that U.S. President Donald Trump issued directives to impose a blockade on sanctioned oil tankers entering and leaving Venezuela, reinforcing caution across global markets.