Gold prices declined in local markets and on the global exchange during Wednesday’s trading, pressured by profit-taking, though sustained safe-haven demand helped curb the downside amid ongoing geopolitical tensions worldwide, according to a report from the iSagha platform.
Saeed Embaby, Executive Director of iSagha, said local gold prices fell by about EGP 55 per gram, with 21-karat gold recording around EGP 5,950. Globally, the ounce slipped by about $49 to $4,445.
Embaby noted that 24-karat gold traded near EGP 6,800 per gram, 18-karat gold at about EGP 5,100, while the gold pound rose to roughly EGP 47,600.
Gold and silver prices also declined at the start of Wednesday’s U.S. session, driven by short-term profit-taking by futures traders. Despite the pullback, losses remain limited so far, with expectations of increased buying interest on dips, as geopolitical tensions continue to bolster demand for gold as a safe haven.
At the same time, expectations that the Federal Reserve will move toward monetary easing continue to provide additional support to gold prices. In this context, the ADP Research Institute reported that U.S. private-sector employment rose by 41,000 jobs in December, with annual wage growth at 4.4%.
This increase followed a decline of 29,000 jobs in November, revised from a previously reported drop of 32,000, and came slightly below market expectations of 47,000 jobs. Commenting on the report, ADP Chief Economist Dr. Nela Richardson said small businesses recovered from November job losses as hiring improved toward year-end, even as large companies continued to cut back.
Looking ahead, traders are avoiding strong directional bets ahead of key U.S. economic data that could influence the near-term trajectory of the U.S. dollar and gold. U.S. economic indicators, Federal Reserve policy expectations, and geopolitical risks remain the main drivers of market direction.
Tensions between the United States and Venezuela remain at the forefront of the geopolitical landscape following a decisive U.S. military operation over the weekend that resulted in the arrest and ouster of Venezuelan President Nicolás Maduro. In the latest developments, U.S. President Donald Trump announced Tuesday evening that Venezuela would deliver between 30 million and 50 million barrels of oil to the United States at market prices, with proceeds benefiting both countries. Venezuela holds the world’s largest proven crude oil reserves, estimated at around 303 billion barrels.
In a related development, renewed U.S. strategic interest in Greenland has heightened geopolitical tensions. The White House said President Donald Trump and his advisers are “discussing a range of options” to acquire the island, adding that the use of military force “remains an option.”
On the economic data front, indicators released this week point to a slowdown in U.S. economic growth. The latest S&P Global PMI readings showed a decline in business activity in December, with the services PMI falling to 52.5 from 54.1 in November, and the composite index easing to 52.7 from 54.2. Meanwhile, the ISM manufacturing PMI remained in contraction territory at 47.9, down from 48.2 in November.
Regarding monetary policy, markets expect the Federal Reserve to cut interest rates twice this year amid signs of cooling in the labor market and easing inflation. However, the Fed is widely expected to keep rates unchanged at its meeting scheduled for January 27–28, with upcoming data—particularly Friday’s Nonfarm Payrolls (NFP) report—likely to play a decisive role in shaping near-term policy expectations.
In this context, Dominic Schnider, Head of Commodities and Chief Investment Officer for FX in Asia-Pacific at UBS Wealth Management, said that central bank purchases, widening fiscal deficits, lower U.S. interest rates, and persistent geopolitical risks could drive gold prices toward $5,000 per ounce by the end of the first quarter.
China’s central bank continues to build its gold reserves, extending its buying streak to a 14th consecutive month—underscoring sustained official demand for the precious metal despite record-high prices. According to data released Wednesday and cited by Bloomberg, the People’s Bank of China increased its gold holdings by about 30,000 ounces last month.
This brings China’s total purchases since November 2024, when the current buying cycle began, to roughly 1.35 million ounces, or about 42 tonnes. Gold has seen sharp price volatility in recent weeks after hitting new record highs last fall; nevertheless, it posted its best annual performance since 1979, driven by central bank buying, geopolitical tensions, and increased hedging against currency and sovereign bond devaluation.
Globally, central banks maintained strong official demand for gold in November, with net purchases totaling about 45 tonnes, lifting year-to-date buying to around 297 tonnes, according to World Gold Council data. The trend has been led primarily by emerging-market central banks continuing to increase their gold holdings.
Data show an improvement in the pace of buying in recent months, while the share of gold in total reserves varied significantly among the largest buyers, reflecting differing monetary policies and reserve management strategies. Poland’s National Bank recorded a strong presence in the market, purchasing 12 tonnes in November to raise its gold reserves to 543 tonnes—around 28% of total reserves—cementing its position as the largest official gold buyer year-to-date.
Brazil’s central bank also continued buying for a third consecutive month, adding 11 tonnes in November to bring total purchases over the past three months to 43 tonnes and reserves to 172 tonnes, equivalent to about 6% of total reserves. Other buyers during the month included Uzbekistan (10 tonnes), Kazakhstan (about 8 tonnes), Kyrgyzstan and the Czech Republic (2 tonnes each), as well as China and Indonesia, which added one tonne each.
By contrast, some central banks posted modest net sales, with the Central Bank of Jordan selling around 2 tonnes, while the Qatar Central Bank reduced its holdings by about 1 tonne in November.
In a related development, the Bank of Tanzania announced that it had accumulated 15 tonnes of refined monetary gold during the first year of its local gold purchasing program, aimed at strengthening foreign exchange reserves and supporting financial stability.
Year to date, Poland’s National Bank remains the largest official gold buyer with total purchases of 95 tonnes—nearly double Kazakhstan’s 49 tonnes, which ranked second. Although reported purchases through November were slower than in previous years, momentum in central bank gold buying remains relatively strong.
This trend underscores the continued reliance of central banks on gold as a strategic asset for hedging and reserve diversification amid escalating geopolitical risks, financial market volatility, and pervasive global economic uncertainty—reinforcing gold’s pivotal role in the international monetary system at the current stage.
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