Gold prices in the local Egyptian market and on the global exchange pared some of their losses during Monday’s trading session, supported by profit-taking activities, according to a report issued by the iSagha platform. However, the precious metal remains under significant pressure following a historic sell-off.
Engineer Saeed Embaby, Executive Director of iSagha, said that local gold prices declined by about EGP 255 during Monday’s trading, with 21-karat gold recording EGP 6,570 per gram, after falling to EGP 6,450 at the start of the session before partially recovering.
Globally, gold prices fell by around $145 per ounce to approximately $4,750, after touching an intraday low near $4,400, the weakest level in more than two weeks.
According to the report, 24-karat gold reached EGP 7,509 per gram, 18-karat gold stood at about EGP 5,631, while the gold pound recorded nearly EGP 52,560.
Largest Daily Loss in Local Market History
The report noted that the local market suffered its largest daily loss ever last Friday, with prices plunging by nearly EGP 600 per gram, coinciding with a sharp global decline exceeding $510 per ounce in a single session.
Despite the steep correction, Embaby highlighted that gold had posted strong gains during January, rising 17% locally, equivalent to EGP 995 for 21-karat gold. Prices opened the month at EGP 5,830, reached a historic peak of EGP 7,550, and closed January at EGP 6,825.
On the global front, gold prices rose 13.4% in January, gaining $577 per ounce, after starting the month at $4,318, touching $5,605, and closing at $4,895.
Local Market Volatility and Pricing Gaps
Embaby explained that the local market is experiencing significant instability due to sharp fluctuations on global screens, leading to price discrepancies within the market at the same moment, in addition to a widening gap of around EGP 300 between local and global prices.
Global Pressures on Gold
Globally, gold recovered part of its losses on Monday after a sharp corrective move seen on Friday and during early Asian trading. The metal rebounded toward the $4,790 level but remains nearly 15% below its all-time high above $5,600, recorded last Thursday.
Several factors contributed to the selling pressure, including:
US President Donald Trump’s announcement of appointing Kevin Warsh as Chairman of the Federal Reserve.
The CME Group’s decision to raise margin requirements for precious metals trading, triggering forced liquidation in gold and silver markets.
Signs of political stabilization in the United States, easing immediate concerns over Federal Reserve independence.
Ongoing Supportive Factors
On the other hand, gold continues to benefit from several supportive factors, most notably:
Persistent geopolitical tensions, particularly between the United States and Iran.
Strong and ongoing demand from major central banks.
Investor focus on upcoming US economic data, including the ISM Manufacturing PMI, expected to improve to 48.3 from 47.9, which could influence the US dollar and commodity prices.
Recent US data also showed that the Producer Price Index (PPI) rose 3.0% year-on-year in December, exceeding expectations, reinforcing the Federal Reserve’s cautious stance on interest rates.
Markets are currently pricing in an 87% probability that interest rates will remain within the 3.50%–3.75% range, with expectations of a 25-basis-point cut in June.
Technical Outlook and Long-Term View
From a technical perspective, gold maintains a long-term bullish trend, supported above the key 100-day exponential moving average on the daily chart. The widening Bollinger Bands signal strong trend continuation, although the 14-day RSI hovering around neutral levels suggests the possibility of further consolidation or short-term pullbacks.
Michael Hsueh, Research Analyst at Deutsche Bank, reaffirmed his bullish outlook on gold, maintaining a price target of $6,000 per ounce. He emphasized that the recent correction does not indicate a fundamental shift in investor behavior, pointing to strong investment inflows from China and rising gold premiums in Asian markets.
Outlook
Analysts agree that gold’s underlying fundamentals remain solid, supported by rising global debt levels, declining confidence in the US dollar, and ongoing geopolitical risks. They note that current price pullbacks represent new buying opportunities, with expectations that the upward trend in gold and precious metals will persist through 2026.
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