Gold prices rose sharply in both local and global markets during Wednesday’s trading session, reaching unprecedented record levels, driven by mounting fears of a trade war casting a shadow over global markets amid intensifying tensions between the United States and the European Union, according to a report issued by the iSagha platform.
Saeed Embaby, Executive Director of iSagha, said that gold prices in the local market jumped by around EGP 140 during today’s trading. The price of 21-karat gold reached approximately EGP 6,535 per gram, while spot gold in global markets rose by about $130 to trade at $4,865 per ounce.
Embaby added that the price of 24-karat gold reached around EGP 7,469 per gram, while 18-karat gold was priced at approximately EGP 5,601 per gram. The price of the gold pound (8 grams of 21k) climbed to nearly EGP 52,280.
Globally, gold recorded a new all-time high, surpassing the $4,800-per-ounce threshold and touching $4,885, its highest level ever, as risk appetite deteriorated in global markets and investors flocked aggressively toward safe-haven assets amid growing geopolitical and economic uncertainty.
The report noted that bullish momentum remains intact, with gold prices gaining more than 6% over the current week, following renewed trade tensions after statements by U.S. President Donald Trump regarding the imposition of new tariffs on the European Union, linking them to the issue of sovereignty over Greenland.
These remarks sparked fears of a broader trade war, amid increasing speculation that Europe could resort to leveraging its massive holdings of U.S. equities and Treasury bonds—estimated at around $10 trillion—as an economic pressure tool. This has fueled a sell-off in U.S. assets and boosted demand for gold.
Risk aversion was further reinforced by turmoil in the Japanese sovereign bond market, where heavy selling pushed long-term bond yields to their highest levels in decades, spilling over into global debt markets, including U.S. Treasuries.
According to the report, ongoing volatility in bond markets is intensifying concerns over the fiscal health of major economies and strengthening gold’s appeal as a primary hedge against economic and financial risks.
Meanwhile, tensions between the United States and the European Union remain at the forefront after the U.S. president threatened to impose 10% tariffs starting February 1, rising to 25% in June if no agreement is reached regarding Greenland. European leaders have responded by affirming their readiness to take countermeasures if necessary.
In a sign of rising European concern, Denmark’s pension fund AkademikerPension announced plans to sell nearly $100 million worth of U.S. Treasury bonds by the end of the month, citing the deterioration of the U.S. government’s fiscal position.
In currency markets, the U.S. Dollar Index, which measures the greenback’s performance against a basket of six major currencies, hovered near 98.62 points, after slipping to a two-week low during Tuesday’s session.
Markets are closely monitoring political developments, with attention turning to expected discussions by the U.S. president regarding Greenland on the sidelines of the World Economic Forum in Davos, as well as a U.S. Supreme Court hearing related to an attempt to remove Lisa Cook, a Federal Reserve Governor.
On the economic data front, the U.S. calendar remains relatively quiet today, aside from the release of pending home sales data. Investors are awaiting Personal Consumption Expenditures (PCE) inflation figures and third-quarter GDP data, due on Thursday, which may provide further clarity on the trajectory of U.S. monetary policy.
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