Local gold markets suspended trading on Saturday, in line with the weekly closure of global exchanges and amid escalating tensions between the United States and Iran, prompting traders to adopt precautionary pricing strategies in anticipation of further sharp gains at the start of next week.
Dealers raised the price of 21-karat gold to EGP 7,500 per gram as a hedge against expected volatility when trading resumes on Monday, particularly as global markets continue to reflect heightened uncertainty.
Global Volatility Intensifies
Gold and silver markets are experiencing sharp fluctuations and rapid gains, driven largely by escalating geopolitical tensions, particularly in the Middle East. The renewed uncertainty has pushed precious metals back to the forefront of safe-haven assets, with investors and consumers closely monitoring price screens.
Gold continues to trade near the $5,300 per ounce level. However, some analysts warn that persistent inflationary pressures in the United States could present challenges to the metal’s upward trajectory in the coming months.
Inflation Pressures Complicate Rate Cut Outlook
Data released by the U.S. Department of Labor showed that the Producer Price Index (PPI) rose by 0.5% in January, following a 0.4% increase in December and exceeding market expectations of 0.3%.
On an annual basis, wholesale inflation increased by 2.9% over the past 12 months. Core PPI, which excludes volatile food and energy prices, climbed 0.8% month-on-month, well above expectations of 0.3%, while the annual core reading reached 3.6%, surpassing forecasts of 3%.
Several analysts suggest that persistent inflation could force the Federal Reserve to delay anticipated interest rate cuts, although market participants still expect easing to begin around the July 29 policy meeting.
Sharp Weekly Moves
Gold has witnessed significant volatility in recent weeks, declining by approximately $150 over the past 30 days but surging by roughly $1,762 over the last six months, underscoring the magnitude of recent price swings.
During Friday’s session on February 27, 2026, spot gold jumped more than $100 per ounce to reach $5,278.10. Meanwhile, futures trading on COMEX reflected growing market anxiety, with gold closing 2% higher at $5,296.40 per ounce, marking a daily gain of $102.20.
Silver showed even greater volatility, surging nearly 8% to $93.82 per ounce, posting a single-session gain of $6.83.
Safe-Haven Demand Returns
These movements are closely tied to escalating tensions in the Middle East, particularly between Iran and Israel, reinforcing gold and silver’s appeal as defensive assets during periods of geopolitical instability.
Markets are currently pricing in both geopolitical risk and inflation concerns, while investors await a series of key U.S. economic releases next week, including the ISM manufacturing and services PMIs, ADP employment data, initial jobless claims, retail sales, and the February nonfarm payrolls report.
Amid ongoing geopolitical uncertainty and inflationary pressures, precious metals appear poised to maintain their safe-haven appeal. However, heightened volatility requires caution from both investors and consumers, as local market trends remain increasingly tied to global price movements.
Follow the latest news on Google News
