Gold Rises Amid Renewed Geopolitical Tensions and Trade Uncertainty

Gold prices witnessed a new surge during trading today, Thursday, supported by a return in safe-haven demand amidst renewed global geopolitical tensions and trade uncertainty, in addition to investor repositioning after the recent profit-taking wave from historical levels.

Saeed Embaby, Executive Director of the "iSagha" platform specialized in gold and jewelry trading, stated that gold prices rose by about 55 Egyptian pounds during today's trading, recording EGP 5,600 for a gram of 21-karat gold, while the ounce increased by about $40 to register $4,143.

He added that 24-karat gold recorded EGP 6,400, 18-karat was about EGP 4,800, and 14-karat gold was around EGP 3,734, while the price of the gold pound remained stable at EGP 44,800.

Gold prices in the local market had fallen yesterday, Wednesday, by about EGP 45, after the gram of 21-karat gold opened trading at EGP 5,590 and closed at EGP 5,545, while the ounce internationally dropped by about $8 from $4,410 to $4,102 per ounce.

Embaby pointed out that the local market is still subject to pricing imbalances, as local gold has fallen by about EGP 300 from its highest level reached at EGP 5,900 for 21-karat, while some raw gold dealers resorted to increasing the gap between the local and global price by about EGP 50 to EGP 100 per gram during the past two days to mitigate their losses resulting from the sudden drop.

Embaby advised consumers wishing to buy to wait until the market stabilizes and the local price aligns with the global stock exchange movement, to avoid bearing part of the dealers' losses during the correction period.

The global stock exchange witnessed limited increases in gold prices, holding firm after a sharp correction from its historical highs, as safe-haven demand remains supported amid a mix of economic and geopolitical tensions.

The US-China trade standoff continues to top investor concerns, with reports indicating that Washington is considering imposing new export restrictions ahead of high-level talks this week and a potential meeting between US President Donald Trump and Chinese President Xi Jinping later this month during the Asia-Pacific Economic Cooperation (APEC) summit in South Korea.

Meanwhile, the US government shutdown, which entered its fourth week, continues to cast a shadow over market sentiment. The prospects of monetary easing by the Federal Reserve are also shaping investor attitudes, as markets increasingly price in a quarter-point interest rate cut at the Federal Open Market Committee (FOMC) meeting on October 29-30.

Global markets are awaiting the release of the US Consumer Price Index (CPI) report on Friday, which may determine the bets for an interest rate cut by the Federal Reserve later this month.

The Chinese Ministry of Commerce announced on Thursday that, as agreed by both sides, Vice Premier He Lifeng will lead a delegation to Malaysia from October 24-27 for economic and trade talks with the United States. This announcement confirms that high-level discussions will begin on Friday.

Reuters reported on Wednesday that the Trump administration is considering a plan to restrict exports of products containing or produced with US software to China.

US Treasury Secretary Scott Biesent told reporters at the White House in response to a question about potential software restrictions on China: "I will confirm that everything is on the table."

He added: "If these export controls are applied - whether it's software, engines, or other things - it would likely be done in coordination with our G7 allies."

The United States announced new sanctions on Russia, targeting energy giants Rosneft and Lukoil. These measures aim to curb Moscow's oil revenues and increase pressure on its war effort.

The sanctions on Russia come after President Donald Trump and his Russian counterpart Vladimir Putin had planned a summit in Budapest to discuss ending the war in Ukraine. Trump later told reporters at the White House on Wednesday that he had canceled the meeting, saying, "I didn't feel like we were going to reach the desired goal, so I canceled it, but we will do it in the future."

In response, former Russian President Dmitry Medvedev on Thursday accused the United States of declaring an "act of war" against Russia. Medvedev, who currently serves as Deputy Chairman of Russia's Security Council, referred to Trump's cancellation of the summit and the new sanctions, writing on Telegram: "Trump's cancellation of the Budapest summit, new sanctions on our country from the United States, what else? Will there be new weapons alongside the infamous Tomahawk missiles?"