Gold prices rose in local markets and on the global exchange during Monday’s trading session, after touching record highs in both markets, driven by strong demand for safe-haven assets amid escalating geopolitical and political shocks, according to a report issued by the I Sagha platform.
Saeed Imbaby, Executive Director of the platform, said that gold prices rose by about EGP 80, with 21-karat gold reaching EGP 6,120 per gram. Globally, gold gained around $112, with the ounce rising to $4,622.
Imbaby explained that the price of 24-karat gold reached approximately EGP 6,994 per gram, while 18-karat gold recorded about EGP 5,246. The gold pound rose to nearly EGP 48,960.
On a weekly basis, gold prices in the local market increased by about EGP 150. Twenty-one–karat gold opened the week at EGP 5,890 and closed at EGP 6,040. Globally, prices jumped by about $178 per ounce, rising from $4,332 at the opening to $4,510 at the close.
Gold posted a new record high at the start of the week, extending its strong rally on the back of growing demand for safe-haven assets, amid renewed concerns over the independence of the Federal Reserve and a broad retreat from risk.
Data from the London Stock Exchange showed that spot gold prices exceeded $4,600 per ounce for the first time before paring gains, bringing year-to-date gains to around 6%.
Political developments linked to ongoing investigations involving Federal Reserve Chair Jerome Powell, along with speculation about a potential acceleration in leadership changes at the Fed, added a new layer of uncertainty.
Analysts believe that appointing leadership more inclined toward interest rate cuts would traditionally support gold, as lower rates reduce the opportunity cost of holding the non-yielding metal, especially amid signs of a slowdown in the U.S. labor market.
Recent geopolitical tensions—particularly developments in Iran and Venezuela—have also boosted gold’s appeal as a safe haven.
In this context, HSBC expects trading momentum to push prices toward levels approaching $5,000 per ounce in the first half of 2026, despite the likelihood of increased volatility.
The bank attributed this outlook to a combination of safe-haven demand, a weaker U.S. dollar, and persistent political uncertainty, noting expectations that the dollar will remain weak throughout 2026.
HSBC added that widening fiscal deficits in the United States and other countries are supporting demand for gold, while central banks are expected to remain among the largest buyers this year as they diversify reserves away from the dollar, even if purchases decline from the record levels seen between 2022 and 2024 due to higher prices.
Gold posted an annual gain of nearly 65% in 2025, marking its strongest performance in decades.
Markets are awaiting key U.S. data next week, including inflation figures, retail sales, manufacturing indicators, and weekly jobless claims, in addition to comments from Federal Reserve officials. Investors have also strengthened expectations for interest rate cuts totaling about 56 basis points in 2026.
Amid mounting political pressure and persistent geopolitical tensions, safe-haven flows are expected to remain a key driver supporting gold prices, as investors stay cautious and closely monitor upcoming economic and political developments.
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