Gold prices saw a notable increase on Saturday in Egypt’s local markets, supported by escalating tensions between Iran and Israel, which have reignited demand for the yellow metal as a safe-haven asset amid geopolitical risks and global economic uncertainty. The rally came during the weekend closure of global exchanges, following a 3.6% surge in the spot price of gold over the past week—the strongest in five weeks.
In the local market, gold prices rose by EGP 50 on Saturday compared to Friday’s close. The price of 21-karat gold reached EGP 4,890 per gram, while the global spot price jumped by $120 during the week to close at $3,430 per ounce.
The 24-karat gold price reached EGP 5,589 per gram, 18-karat stood at EGP 4,191, and the price of a gold sovereign (8 grams of 21K) climbed to EGP 39,120.
Gold had already surged EGP 110 in local markets on Friday, opening at EGP 4,730 per gram (21K) and closing at EGP 4,840. Meanwhile, global spot prices rose by $47—from $3,383 to $3,430.
Israel’s preemptive military strike triggered a sell-off in global equity markets and sent oil prices soaring, further boosting gold’s appeal as a safe haven. Prices climbed to their highest since April 22, when gold hit a historic high of $3,500 per ounce.
Gold broke through the $3,440 barrier, marking the highest weekly close in its history and outperforming the U.S. dollar, which lost ground as a traditional safe-haven asset.
This unexpected decline in the dollar reflects weakening investor confidence in the U.S. economy under current conditions. While the dollar and U.S. Treasury bonds have long been viewed as defensive assets during crises, gold now appears to be gaining preference as the most stable and secure option. In a world where economic certainties are fading, gold is no longer seen solely as an inflation hedge—it is increasingly viewed as a refuge from a volatile global financial system.
On the economic front, U.S. inflation data for May—including the Consumer Price Index (CPI) and Producer Price Index (PPI)—indicated a continued slowdown in price growth. This bolstered expectations that the Federal Reserve may begin cutting interest rates in upcoming meetings, despite a slight rebound in consumer confidence, as shown in the University of Michigan survey.
Markets are now eagerly awaiting the Federal Reserve’s policy meeting scheduled for June 17–18, along with key economic indicators such as retail sales, industrial production, labor market figures, and housing data—all of which are expected to influence the gold market’s trajectory in the near term.
Despite the easing inflation trend, oil prices surged by more than 6% due to Middle East tensions, raising fears of a new inflationary wave—particularly in energy prices—which could pressure central banks to reconsider their monetary easing stance.
In this context, Goldman Sachs reaffirmed its forecast that gold will reach $3,700 by the end of 2025 and $4,000 by mid-2026. Bank of America issued a similar outlook, expecting gold to hit that level within the next 12 months.
Separately, the European Central Bank’s annual report released on Wednesday revealed that central bank gold reserves have reached 36,000 tonnes—close to the highest levels since the Bretton Woods era—indicating that central bank gold buying remains strong in 2025. This continued institutional demand is likely to keep gold prices supported in the near term.
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