Gold prices in Egypt saw a slight decline last week, pressured by a stronger U.S. dollar and profit-taking amid cautious investor sentiment ahead of upcoming Federal Reserve policy decisions, according to a report from the iSagha gold trading platform.
Saeed Embabi, CEO of iSagha, said that 21-karat gold dropped by about EGP 5 during the week, opening at EGP 5,350 and closing at EGP 5,345.
On the global market, the ounce eased by $2, from $4,003 to $4,001.
Meanwhile, 24-karat gold was quoted at EGP 6,109, 18-karat at EGP 4,581, and 14-karat at EGP 3,564, while the gold pound coin remained stable at EGP 42,760.
The report attributed this month’s overall upward trend to strong central bank demand and persistent geopolitical and economic uncertainty across global markets.
Gold and Silver End the Week Flat Amid Market Volatility
Both gold and silver ended the week little changed, despite fluctuations driven by mixed signals — weak U.S. labor data versus cautious Federal Reserve remarks.
Gold traded near $3,987 per ounce on Friday, recovering from earlier losses. Meanwhile, 10-year U.S. Treasury yields saw their biggest drop in nearly a month following disappointing employment figures, reinforcing expectations for a near-term rate cut.
However, those expectations were tempered by Austan Goolsbee, President of the Chicago Fed, who warned that assessing the economy has become difficult due to the lack of inflation data amid the ongoing U.S. government shutdown, injecting a tone of caution into the markets.
According to the University of Michigan, U.S. consumer sentiment in November fell to its lowest level since mid-2022. Data from CME’s FedWatch Tool shows that markets are now pricing in a 68% chance of a rate cut in December.
Labor Market Weakness Fuels Gold Outlook — But Fed Comments Add Uncertainty
Data from Challenger, Gray & Christmas, a firm specializing in labor market analytics, showed that October job cuts in the U.S. hit their highest level in over two decades.
Such deterioration is typically seen as bullish for gold, as weaker labor conditions strengthen the case for rate cuts — making non-yielding assets like bullion more attractive.
Yet, Goolsbee’s remarks complicated that narrative, noting the Fed’s limited visibility amid missing inflation reports. His admission of uncertainty dampened market optimism for aggressive monetary easing.
The interplay between weak employment data and cautious Fed guidance left precious metals trading in balance, with neither bullish nor bearish forces dominating sentiment.
Analysts: Gold Retains Mid-Term Upside Potential
Analysts believe gold retains strong medium-term bullish potential, supported by expectations of lower interest rates, a weaker dollar, and continued central bank diversification away from the U.S. currency.
With the U.S. government shutdown delaying inflation and retail data, experts expect gold to remain above $4,000 per ounce, with further gains possible if the Fed cuts rates next month.
Despite political and economic uncertainty, gold continues to hold its ground as a safe-haven asset, maintaining levels above $4,000 while investors await new catalysts to determine the metal’s next move.
Outlook: ING Sees Gold Averaging $4,000 in Q4, Rising to $4,100 in Q1 2026
According to ING Bank, gold prices are likely to average around $4,000 per ounce in Q4 2025, with potential to reach $4,100 in Q1 2026.
The bank described the recent dip as a “healthy correction” within an ongoing uptrend.
ING noted that any further weakness could attract renewed buying from both retail and institutional investors, with markets pricing in a 71% chance of a December rate cut.
The bank wrote:
“Even after the latest pullback, gold prices remain up more than 50% year-to-date. Core supportive factors — central bank buying and safe-haven demand — remain intact. ETF inflows are expected to resume as the Fed continues its rate-cutting cycle.”
Central Banks Reinforce Market Support
Gold’s strength remains underpinned by robust central bank demand.
According to the World Gold Council (WGC), gold-backed ETFs added 222 tonnes between July and September — the fastest quarterly increase in years.
Central banks themselves purchased about 220 tonnes of gold in Q3, marking a 28% rise from Q2 and 6% above the five-year quarterly average.
The Bank of Korea is reportedly considering adding gold to its reserves for the first time since 2013, while Serbia’s central bank plans to nearly double its gold holdings to 100 tonnes by 2030.
ING emphasized that this renewed central bank activity represents a structural shift in reserve management strategies — signaling sustained, long-term support for gold prices.
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