Gold prices rose in local and global markets during Wednesday's trading, with the precious metal narrowing some of its recent losses after two consecutive declines. This was supported by US President Donald Trump's decision to extend the ceasefire with Iran, which boosted relative calm in the markets and provided additional time to resume peace talks, according to the «Marsad al-Dhahab» economic studies report.
Dr. Walid Farouk, a researcher in gold and jewelry affairs and director of the «Marsad al-Dhahab», stated that gold prices locally increased by about 20 EGP during today's trading, compared to yesterday's closing, with 21-carat gold recording approximately 7000 EGP. Globally, the ounce rose by about 36 dollars, reaching 4757 dollars, according to World Gold Council data.
He added that the price of 24-carat gold recorded about 8000 EGP, and 18-carat gold about 6000 EGP, while the gold pound recorded about 56000 EGP.
He pointed out that local prices are still about 47 EGP lower than their global counterparts, amid continued weak local demand and market anticipation of price movements.
Gold prices had fallen by about 55 EGP during Tuesday's trading, with the price of 21-carat gold opening at 7035 EGP and closing at 6980 EGP, while the ounce fell by about 101 dollars, opening at 4822 dollars and closing at 4721 dollars.
The report indicated that gold recovered some of its losses after a two-day decline, benefiting from US President Donald Trump's decision to extend the ceasefire with Iran, which gave markets room to breathe and await a new round of peace talks.
The precious metal climbed to its highest levels in the European session, recovering from a weekly low near 4668 dollars recorded the previous day, supported by a slight decline in the dollar after the extension announcement.
The report clarified that despite this recovery, investor anxiety persists amid ongoing tensions related to the Strait of Hormuz, in addition to expectations that the Federal Reserve will adopt a less accommodative monetary policy, which could limit the dollar's weakness and curb gold's gains.
Trump had announced an indefinite extension of the ceasefire to allow for the completion of negotiations, while Iranian sources denied Tehran's request for this extension, reflecting continued divergence in positions.
Tensions also remain due to the US naval blockade, as Washington seeks to maintain pressure, while Iran stipulates the lifting of the blockade before resuming talks, which keeps geopolitical risks alive and supports the dollar's attractiveness as a reserve currency.
Farouk stated that the remarks of Kevin Warsh, a candidate for the Federal Reserve chairmanship, were interpreted as leaning towards hawkishness, as he affirmed his commitment to the independence of monetary decision-making and not making promises to cut interest rates, in addition to calling for a new framework to combat inflation away from forward guidance tools, which reinforces a data-driven approach.
He added that this scenario places gold in a complex equation; continued high interest rates push prices down below 4700 dollars, while any sudden shift towards easing could weaken the dollar and support gold's rise.
He noted that the movements of the US dollar index remain the most influential factor on gold, as its rise increases the cost of purchasing the metal for investors holding other currencies, which reduces global demand.
This coincides with the rise in US Treasury bond yields, with the yield on two-year bonds reaching 3.77%, while the yield on 10-year bonds recorded about 4.288%, which increases the opportunity cost of holding gold.
US economic data also supported this trend, as retail sales rose by 1.7% in March, exceeding expectations, with the February reading revised to 0.7%, reflecting strong consumer spending and reducing the likelihood of interest rate cuts in the near term, thereby supporting the dollar and pressuring gold.
At the same time, no influential economic data is expected during Wednesday's trading, making the movements of the dollar, and thus gold, hostage to geopolitical developments, especially concerning US-Iranian relations and navigation in the Strait of Hormuz, through which about a fifth of global oil supplies pass.
In a related context, central banks continue to play a pivotal role in supporting the market, as Q1 2026 data showed continued official demand, despite a temporary slowdown in January at 5 tons compared to an average of 27 tons per month in 2025, before rising again in February.
The broadening of the buyer base stands out as one of the most important shifts, with countries like Malaysia and South Korea returning to the market, in addition to China continuing to boost its reserves for the seventeenth month, reflecting a strategic trend towards diversifying reserves away from traditional monetary assets.
Market actual flows also reflect strong demand, with Swiss gold exports rising by about 30% in March, especially to major trading centers such as the United Kingdom.
Despite short-term pressures resulting from the strong dollar and rising yields, institutional demand, led by central bank purchases, continues to establish a solid foundation for the gold market, supporting a positive outlook in the medium and long term.
Follow the latest news on Google News
