Gold posted strong weekly gains of approximately 1.9% on global exchanges, buoyed by growing demand for the precious metal as a safe-haven asset amid escalating global trade tensions and recent remarks from former U.S. President Donald Trump regarding the potential imposition of tariffs of up to 70% starting this August.
Despite the global rise, gold prices in Egypt's local market recorded a slight decline during Saturday's trading, coinciding with the weekend closure of global exchanges. The price of 21-karat gold dropped by EGP 10 compared to Friday’s closing, reaching EGP 4,630 per gram.
Gold gave up part of its Friday gains today. The 24-karat gram was priced at EGP 5,295, while 18-karat gold stood at EGP 3,971. The 14-karat gram recorded EGP 3,087, and the gold pound settled at EGP 37,064.
On Friday, local gold prices declined by about EGP 5. The 21-karat gram opened at EGP 4,645 and closed at EGP 4,640, even as global spot prices climbed by $8 to $3,337 per ounce, up from $3,329 at the start of the session.
Trump’s Tariff Talk Lifts Global Gold
Globally, gold rose to levels above $3,330 per ounce following comments by Trump, who announced that letters were sent Friday to countries targeted for new tariffs, slated to take effect on July 9. He indicated these tariffs would range between 10% and 70%.
In parallel, U.S. Treasury Secretary Scott Bessent stated that the U.S. may impose reciprocal tariffs on nearly 100 countries, with rates starting at 10%, and anticipated the conclusion of multiple trade deals before the implementation date.
Bond Yields Cap Gold’s Upside
Although trade tensions are bolstering demand for gold, rising U.S. bond yields continue to pressure prices. The 10-year Treasury yield climbed to 4.338%, up 6.5 basis points, while real yields increased to 2.018%. Meanwhile, the U.S. dollar index fell by 0.13% but remains close to the 97-point mark.
U.S. Jobs Data Send Mixed Signals
Labor Department data showed that the U.S. economy added 147,000 jobs in June, surpassing expectations of 110,000. Unemployment fell to 4.1% from 4.2%. However, the bulk of new jobs came from the public sector, with private-sector hiring marking its weakest growth in eight months, reflecting cautious sentiment among businesses amid slowing growth forecasts.
These figures reinforce expectations that the Federal Reserve will maintain current interest rates, waiting to assess the impact of new trade policies on inflation and economic momentum.
Geopolitical Landscape and Legislative Pressures
On the geopolitical front, Trump revealed that his talks with Russian President Vladimir Putin regarding Ukraine made no progress, though he informed Ukrainian President Volodymyr Zelensky that the U.S. remains committed to supporting Ukraine’s air defenses.
Meanwhile, the U.S. administration is pushing to pass a major legislative package dubbed the “Big Beautiful Sheet,” which would extend most of the 2017 tax cuts due to expire in 2025. According to Congressional Budget Office estimates, the plan would add $3.4 trillion to the federal deficit over the next decade — a move that could weaken the dollar and further enhance gold’s appeal as a hedge.
Looking Ahead
Markets await next week’s release of the Federal Open Market Committee (FOMC) meeting minutes, along with jobless claims data for the week ending July 5, in addition to speeches from key Fed officials.
With trade tensions persisting, public debt on the rise, and slowing private-sector hiring momentum, gold continues to hold its allure as a safe-haven asset. Market projections indicate the Fed may cut interest rates by 50 basis points before the end of 2025.
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