Gold prices edged lower in the local market during Saturday’s trading, coinciding with the global market’s weekend closure, after the ounce declined by nearly 3% over the past week. The drop came as U.S. Treasury yields rose and geopolitical tensions in the Middle East intensified, boosting demand for the U.S. dollar, according to a report issued by the Ai Sagha platform.
Saeed Embabi, CEO of the Ai Sagha platform, said that gold prices in the local market fell by about 10 Egyptian pounds during Saturday’s trading, with 21-karat gold recording around EGP 7,410 per gram.
He added that 24-karat gold reached approximately EGP 8,469 per gram, while 18-karat gold recorded about EGP 6,352 per gram. Meanwhile, the gold pound coin was priced at around EGP 59,280.
Globally, gold fell by about $151 over the past week, with the ounce closing near $5,021.
Embabi noted that the price gap between the local and global markets has nearly disappeared, narrowing to about EGP 4, indicating strong alignment between domestic and international gold prices.
He explained that the relative stability of local prices despite the global decline is mainly due to the rise in the U.S. dollar exchange rate in the domestic market, which limited the extent of the decline in local gold prices.
Dollar strength and rising yields pressure gold
Gold declined globally as the U.S. dollar continued to attract safe-haven demand amid escalating geopolitical tensions in the Middle East, prompting investors to increase their holdings of the American currency.
At the same time, U.S. economic data pointed to a slowdown in growth during the second half of 2025. The second estimate for fourth-quarter GDP growth was revised down to 0.7% from the previous estimate of 1.4%, according to the U.S. Department of Commerce.
Meanwhile, the core Personal Consumption Expenditures (PCE) price index — the Federal Reserve’s preferred inflation gauge — held steady at 3.1% year-on-year in January, while the headline figure eased slightly to 2.8%.
These developments have raised concerns about the potential emergence of stagflation, particularly as the ongoing conflict in the Middle East could create long-term supply shocks that slow economic growth while driving inflation higher.
Higher bond yields reduce the appeal of precious metals
U.S. Treasury yields have also climbed, with the yield on the 10-year Treasury note rising to around 4.286%, adding further pressure on precious metals. Higher yields typically reduce the attractiveness of non-yielding assets such as gold.
Financial markets are also pricing in a less accommodative monetary policy stance from the Federal Reserve, with expectations pointing to limited interest-rate cuts in the coming period.
Oil surge fuels inflation concerns
Inflation concerns have intensified as energy prices surged due to the Middle East conflict. West Texas Intermediate crude climbed to around $113 per barrel, while gasoline prices in the United States jumped more than 20% to roughly $3.60 per gallon.
U.S. President Donald Trump stated that the United States would take firm action against Iran next week following the expiration of a 30-day waiver related to purchases of sanctioned Russian oil.
Liquidity demand weighs on gold and silver
Gold and silver prices have retreated over the past two weeks as investors shifted toward holding U.S. dollar liquidity amid heightened global uncertainty.
Although geopolitical tensions typically support safe-haven demand, the conflict involving the United States, Israel, and Iran has generated exceptional demand for dollar liquidity, reinforcing the currency’s role as the world’s primary reserve currency.
During periods of acute economic stress, investors often prefer the most liquid assets, even at the expense of traditional safe-haven assets such as gold.
Long-term outlook remains bullish
Analysts believe the current phase reflects what could be described as a “liquidity demand stage” during crises, making the short-term outlook for precious metals more cautious. Prices may stabilize temporarily before resuming their longer-term upward trend.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, said that gold still has strong long-term upside potential, noting that geopolitical tensions, rising global debt levels, and declining confidence in fiat currencies remain supportive factors for the metal.
He added that continued government deficit spending and the expansion of central-bank balance sheets reinforce gold’s role as a key hedge within the global financial system.
Busy week for central bank meetings
Markets are now focusing on a series of major central-bank meetings scheduled for next week, led by the Federal Reserve’s monetary policy decision.
The week will begin with a meeting of the Reserve Bank of Australia, followed by the Bank of Canada’s policy decision, while the Bank of Japan will also hold its meeting on the same day.
On Thursday, policy decisions are expected from the Swiss National Bank, the Bank of England, and the European Central Bank, with most economists anticipating that these institutions will maintain their current policy settings without significant changes.
Investors will also monitor several important U.S. economic releases, including industrial production figures, housing market indicators, and inflation and employment data, which may provide further clues about the trajectory of the U.S. economy in the coming months.
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