Gold prices in the local market recorded a notable increase during Saturday’s trading, coinciding with the closure of global exchanges, after the ounce posted weekly gains of about 1.4%. The advance was supported by weak U.S. economic data that reinforced expectations of a shift by the Federal Reserve toward monetary easing, according to a report issued by the iSagha platform.
Eng. Saeed Embabi, Chief Executive Officer of iSagha, said local gold prices rose by around EGP 30 during today’s session, with 21-karat gold reaching approximately EGP 6,680 per gram. Meanwhile, global gold prices increased by about USD 70 over the past week, closing at USD 4,965 per ounce.
Embabi added that 24-karat gold stood at around EGP 7,634 per gram, 18-karat gold at approximately EGP 5,726 per gram, while the gold pound reached about EGP 53,440.
Relative stability after a pullback
He noted that gold markets have begun to show relative stability following the recent pullback. However, demand continues to exceed operating capacity, reinforcing the ongoing suspension of immediate delivery and the adoption of extended delivery periods.
Global markets: a healthy correction after an exceptional rally
Globally, after moving past the sharp declines seen last week, gold started the new week on a more stable footing, positioning itself to achieve solid weekly gains as buyers stepped in on price dips.
Friday’s trading witnessed sharp volatility, with gold falling to a three-day low of USD 4,655 per ounce before quickly recouping losses and climbing toward USD 4,950. The rebound was supported by weak U.S. labor market data that revived expectations of monetary easing.
Analysts emphasized that current volatility does not signal a negative structural shift in the gold market. Rather, it represents a corrective phase and a clearing of excess speculative positions following an exceptional rally during which gold recorded more than 12 all-time highs within a few weeks, while silver reached levels considered overstretched.
Positive medium- and long-term outlook
Despite the volatility, underlying demand remains strong, driven by continued central bank purchases at historically high levels, alongside robust physical demand in key markets such as India and China. In addition, gold allocations within investment portfolios remain relatively low, leaving room for increased participation by institutional investors.
Analysts also noted that major banks continue to project gold prices approaching USD 6,000 per ounce by year-end, based on long-term structural factors including rising sovereign debt, fiscal imbalances, geopolitical risks, and the gradual weakening of the U.S. dollar.
Influential economic and geopolitical data
U.S. economic data were limited last week, with the release of the January nonfarm payrolls report postponed to February 11 due to the government shutdown.
The University of Michigan consumer sentiment survey showed a slight improvement to 57.3 points from 56.4, alongside a decline in short-term inflation expectations.
At the same time, higher layoff rates, fewer job openings, and rising initial jobless claims strengthened expectations for interest rate cuts in 2026, with markets pricing in approximately 54 basis points of easing by year-end.
Market attention in the coming week is expected to focus on employment data, retail sales, and the Consumer Price Index, as well as remarks from several Federal Reserve officials, all of which are likely to play a decisive role in shaping gold’s direction in the period ahead.
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