Gold prices in the local Egyptian market declined by 2.2% during last week’s trading, despite a 1.4% increase in gold prices on the global bullion market. The rise in global prices was supported by weak U.S. economic data that reinforced expectations of a shift toward monetary easing by the Federal Reserve, according to a report issued by iSagha platform.
Eng. Saeed Embaby, Executive Director of iSagha, said that local gold prices fell by approximately EGP 150 over the week, with 21-karat gold recording EGP 6,675 per gram, while global gold prices rose by around $70, reaching approximately $4,965 per ounce.
According to the report, 24-karat gold stood at EGP 7,629 per gram, 18-karat gold at around EGP 5,721, while the gold pound recorded approximately EGP 53,400.
Embaby explained that the decline in local prices came despite higher global prices due to the presence of a price gap above international levels, ranging between EGP 300 and EGP 500, driven by traders’ hedging behavior amid sharp market volatility. As risks eased, prices corrected downward in the local market.
Globally, after overcoming last week’s sharp sell-off, gold began trading this week with greater stability, positioning itself for solid weekly gains as buyers stepped in on price pullbacks.
Friday’s session witnessed sharp volatility, with gold falling to a three-day low of $4,655 per ounce, before quickly recovering and rising toward $4,950, supported by weak U.S. labor market data that revived expectations for monetary easing.
Analysts confirmed that current volatility does not indicate a negative shift in the gold market, but rather reflects a natural correction and a clearing of excessive speculative positions, following an exceptional rally during which gold recorded more than 12 record highs within a few weeks, while silver reached levels described as overextended.
Despite the fluctuations, underlying demand for gold remains strong, driven by continued central bank purchases at historically high levels, alongside robust physical demand in key markets such as India and China. Meanwhile, gold allocations within investment portfolios remain relatively low, leaving room for increased participation by institutional investors.
Analysts noted that major banks continue to expect gold prices to approach $6,000 per ounce by the end of the year, based on long-term structural factors including rising sovereign debt, fiscal imbalances, geopolitical risks, and the gradual weakening of the U.S. dollar.
Key Economic and Geopolitical Data
U.S. economic data releases were limited last week, as the January Nonfarm Payrolls report was postponed until February 11 due to the government shutdown.
The University of Michigan consumer sentiment survey showed a slight improvement to 57.3 points, compared to 56.4, alongside a decline in short-term inflation expectations.
Meanwhile, rising layoff rates, declining job openings, and increasing unemployment claims strengthened expectations for interest rate cuts in 2026, with markets pricing in approximately 54 basis points of easing by year-end.
Market attention is expected to focus in the coming week on employment data, retail sales, and the Consumer Price Index, as well as remarks from several Federal Reserve officials, which are likely to play a decisive role in shaping gold price trends in the period ahead.
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