Gold prices advanced in local markets and on global exchanges during Wednesday’s trading, supported by escalating tensions between the United States and Iran over the nuclear issue, as well as continued uncertainty surrounding U.S. trade policy. These factors boosted demand for safe-haven assets, according to a report issued by the iSagha platform.
Saeed Embabi, CEO of iSagha, said local gold prices increased by around EGP 45, with the price of one gram reaching EGP 7,000. Globally, the ounce rose by about $28 to record $5,183.
He added that 24-karat gold registered approximately EGP 8,000 per gram, while 18-karat gold reached around EGP 6,000. The gold pound coin was priced at nearly EGP 56,000.
Volatility Amid Dollar Strength and Profit-Taking
Despite the gains, gold experienced some volatility on Wednesday, edging slightly lower after trimming part of the previous session’s losses. Although the pullback was limited, persistent geopolitical tensions in the Middle East and uncertainty over U.S. trade policy continued to underpin safe-haven demand.
Prices briefly surpassed the $5,200-per-ounce level during European trading before a relatively stable U.S. dollar, coupled with a modest rebound in global equity markets, capped further upside momentum.
Nuclear Talks and Supreme Court Ruling in Focus
Markets remain cautious ahead of high-level nuclear talks between the United States and Iran scheduled to take place in Geneva, amid investor concerns about potential military escalation if negotiations fail, particularly given the significant U.S. military presence in the region.
U.S. President Donald Trump recently announced a 10% tariff on imports from all countries, reaffirming his commitment to trade measures following a decision by the Supreme Court of the United States that limited the use of the International Emergency Economic Powers Act to support tariff policies.
Meanwhile, Iranian Deputy Foreign Minister Abbas Araghchi stated that Tehran is prepared to take steps toward reaching an agreement, while President Trump warned via a post on Truth Social that failure to secure a deal would result in a “difficult day” for Iran.
Repricing Federal Reserve Rate Expectations
On the monetary policy front, investors have reassessed expectations for near-term rate cuts by the Federal Reserve, as concerns over persistent inflationary pressures dampened bets on imminent easing.
Chicago Fed President Austan Goolsbee signaled a cautious approach to cutting rates without clear evidence that inflation is sustainably returning to the 2% target. Similarly, Boston Fed President Susan Collins indicated that interest rates are likely to remain unchanged “for some time” until greater confidence is achieved regarding the inflation outlook.
This shift has supported the U.S. dollar, traditionally a headwind for gold, which tends to perform better in a low-interest-rate environment.
Financial Institutions Raise Long-Term Forecasts
On the long-term outlook, JPMorgan Chase raised its long-term gold price target by 15% to $4,500 per ounce, while maintaining its end-2026 forecast at $6,300.
In a note to clients, the bank cited increased central bank purchases, public announcements of U.S. Treasury divestment strategies, and a broader shift by some countries away from the U.S. dollar toward the Chinese yuan in revenue settlements as supportive structural factors.
Additionally, Macquarie Group lifted its average gold price forecast for the first quarter of 2026 to $4,590 per ounce from $4,300, and raised its full-year 2026 estimate to $4,323 from $4,225.
Strong Performance Since the Start of the Year
Spot gold has gained roughly 20% since the beginning of the year, reaching a three-week high of $5,248.89 per ounce after previously touching an all-time high of $5,594.82 on January 29.
The rally follows a surge of more than 64% in 2025, driven by intensifying geopolitical tensions and growing institutional and official demand for gold as a hedge and reserve diversification tool.
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