Gold prices rose in the local Egyptian market in midday trading on Tuesday, in tandem with a global surge that pushed the ounce above the $3,400 mark. The rally comes amid renewed concerns over global trade tensions and growing doubts about the independence of the U.S. Federal Reserve, driving increased demand for the precious metal as a safe-haven asset.
In Egypt, despite the global uptick, local gold prices dropped by EGP 25, with 21-karat gold recording EGP 4,710 per gram. Meanwhile, the international spot price rose by $29 to reach $3,428 per ounce.
Other domestic price points:
24-karat gold: EGP 5,383 per gram
18-karat gold: EGP 4,037 per gram
Gold pound (8 grams of 21k): EGP 37,680
Gold gained nearly 1% globally during today’s session, supported by a weakening U.S. Dollar Index and falling U.S. Treasury yields. These factors have added bullish momentum to the metal, further bolstered by geopolitical and monetary policy uncertainty.
Trade Talks Breakdown Fuels Safe-Haven Buying
Investor sentiment continues to deteriorate over the prospect of a trade deal between the United States and the European Union ahead of the August 1 deadline. This uncertainty is pressuring global markets and driving investors toward safe-haven assets such as gold.
Reports suggest the Biden administration is preparing to impose tariffs of up to 30% on most EU imports if no agreement is reached. In response, the EU is drafting retaliatory tariffs targeting key American exports, including digital services, aerospace components, and whiskey.
Fed Independence Under Scrutiny After Treasury Comments
Market fears over the independence of the U.S. Federal Reserve escalated following controversial remarks by Treasury Secretary Scott Besant. In a recent interview, Besant called for a "comprehensive reassessment"