Gold prices rose in both local and global markets during mid-day trading on Wednesday, supported by growing expectations that the Federal Reserve will adopt a looser monetary policy in the coming period, according to a report by the "iSagha" platform for gold and jewelry trading.
Market Performance Saeed Embabi, CEO of iSagha, stated that local gold prices rose by approximately 15 EGP compared to yesterday's close.
21-karat: Recorded 5,570 EGP.
Global Ounce: Rose by about $22 to reach $4,155.
Other Gold Prices:
24-karat: Approximately 6,366 EGP.
18-karat: Around 4,774 EGP.
The Gold Pound: Stabilized at 44,560 EGP.
The report noted that Tuesday's trading also saw a 15 EGP rise locally (opening at 5,535 EGP and closing at 5,555 EGP), while the global ounce witnessed relative stability, opening and closing at $4,133.
Federal Pressures and Leadership Changes Today's rally was driven by increasing market expectations of a more flexible Federal Reserve policy. This follows reports suggesting Kevin Hassett—a senior White House advisor—is a frontrunner for the Fed Chair position, which markets interpreted as a signal favoring interest rate cuts.
Labor Market: The Department of Labor reported a drop in initial jobless claims to 216,000 for the week ending November 22, beating market expectations of 225,000. The four-week moving average fell to 223,700.
Durable Goods: Orders rose by 0.5% in September, exceeding expectations, supported by a rise in transport equipment for the second consecutive month.
Consumer Data: Economic data released on Tuesday showed weak consumer spending and moderating producer prices, prompting markets to strengthen bets on a rate cut in December.
Risk Appetite and Geopolitics Despite the supportive easing pressures, gold faced some headwinds due to improved market sentiment following reports of preliminary progress in peace negotiations between Russia and Ukraine, which weighed on safe-haven demand. The US Dollar Index fell to near 99.84 after touching a weekly low of 99.60.
Strong Forecasts: Deutsche Bank Leads Optimism Major financial institutions have bolstered their bullish forecasts:
Deutsche Bank: Raised its 2026 gold price estimate to $4,450 per ounce (up from $4,000), citing strong central bank purchases and increased investor inflows. The bank sees potential for prices to approach $4,950, a 14% increase over current December 2026 futures.
World Gold Council: Noted that global gold ETFs recorded net inflows of 55.1 tons in October 2025, driven by strong buying in North America and Asia, despite significant outflows from Europe.
Central Banks Continue to Support the Uptrend In a separate report, Goldman Sachs revealed:
China: Increased its gold reserves by about 15 tons in September.
Total Central Bank Buying: Reached approximately 64 tons, triple the amount purchased in August. The bank emphasized that these purchases have been the most influential factor in gold's rise over the past three years, with prices touching historic levels exceeding $4,380 per ounce in October.
Goldman Sachs expects this pace to continue through the end of 2026, with average monthly purchases nearing 80 tons, projecting prices to reach $4,900 per ounce by the end of next year, supported by official demand and anticipated monetary easing.
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