Gold prices advanced in both local and international markets during Wednesday’s trading, supported by ongoing geopolitical tensions in the Middle East and their potential repercussions on the global economy amid a highly unstable environment, according to a report issued by the iSagha platform.
Saeed Embabi, CEO of the platform, said that 21-karat gold in Egypt increased by approximately EGP 60 per gram to reach EGP 7,340. Meanwhile, the global ounce price rose by about $108 to $5,195.
Twenty-four karat gold recorded EGP 8,389 per gram, 18-karat stood at EGP 6,291, and the gold pound coin approached EGP 58,720.
Limited gains below $5,200
Globally, gold is attempting to hold on to modest gains during the European trading session but remains below the $5,200 per ounce level in the first half of the day. Investor concerns over the ongoing conflict in the Middle East and its potential impact on the global economy continue to underpin safe-haven demand for the yellow metal.
U.S. President Donald Trump stated that the American military operation in Iran could last four to five weeks, with further strikes continuing as long as necessary. This has pressured investor sentiment and weighed on equity markets, supporting demand for gold as a defensive asset.
Energy crisis fears lend support
The closure of the Strait of Hormuz — one of the world’s most critical energy corridors — has pushed crude oil prices to their highest levels since June 2025. Iran’s targeting of key global energy infrastructure and its warning that it would not allow a single drop of oil to leave the region have intensified fears of a new energy crisis.
Such concerns could exacerbate inflationary pressures and potentially force the Federal Reserve to slow or reconsider its rate-cut trajectory. These expectations have helped keep the U.S. dollar stable below its yearly highs, limiting gold’s upside momentum.
Markets are awaiting key U.S. economic data, including the ADP private employment report and the ISM Services PMI. However, investor focus remains firmly on developments in the conflict involving the United States, Israel, and Iran.
Record surge above $5,400
On Monday, March 2, 2026, gold surged past the $5,400 per ounce level, hitting an intraday high of $5,419.32 amid escalating geopolitical tensions following the closure of the Strait of Hormuz after the “Epic Rage” operation.
The rally was driven by intensified safe-haven demand, alongside accelerated gold purchases by central banks in China, India, and Turkey during the period of heightened volatility. Nevertheless, the metal faced profit-taking pressure the following day, retreating toward $5,180 after four consecutive sessions of gains, while remaining highly sensitive to geopolitical developments.
Middle East turmoil revives dollar’s safe-haven appeal
In a related analysis published by Reuters, columnist Mike Dolan noted that gold failed to fully perform its traditional safe-haven role during the latest escalation. The metal fell by 4% in one session, while silver dropped nearly 10% at the peak of volatility.
By contrast, the U.S. dollar index advanced despite declines in U.S. equities and bonds, signaling a return of the “liquidity premium” to the greenback, particularly as rising oil prices — priced in dollars — boosted demand for the currency.
Additionally, an unusual warning from the Swiss National Bank regarding potential intervention to sell the Swiss franc weighed on traditional safe havens, including gold.
Rethinking the “dollar decline” narrative
Although gold had been among the top-performing assets in 2026 prior to the recent escalation, the dollar’s strong rebound during a sharp geopolitical test has prompted a reassessment of narratives surrounding the erosion of its global dominance.
Recent market behavior suggests that many investment portfolios opted to raise cash levels and lock in profits on top-performing assets amid heightened volatility and the risk of a global energy shock.
While gold may resume its upward trajectory on longer-term structural drivers, this week’s developments have underscored that safe-haven dynamics are not static — and that the U.S. dollar remains the most entrenched refuge when crises intensify.
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