Gold prices declined in local markets during Saturday’s trading, coinciding with the weekend closure of global bullion exchanges, despite the sharp drop seen in the ounce by the end of last week, according to a report issued by iSagha, the gold and jewelry market platform.
Data showed that global gold prices ended the week down 1.9%, while posting strong monthly gains of 13.4%, despite the severe volatility witnessed during the final week of January.
Saeed Embaby, CEO of iSagha, said that gold prices in the local market fell by around EGP 80 during Friday’s trading, with the price of 21-karat gold reaching EGP 6,670 per gram. Meanwhile, gold lost about $93 per ounce on global exchanges last week, closing at $4,895 after touching an unprecedented record high of $5,602 per ounce on Thursday.
Embaby added that global gold prices achieved monthly gains of approximately $577.
Locally, 24-karat gold recorded about EGP 7,623 per gram, while 18-karat gold stood at around EGP 5,717. The gold pound rose to nearly EGP 53,360.
He noted that the local market incurred weekly losses of about EGP 600 in the price of 21-karat gold, as prices opened the week at EGP 7,350 and closed at EGP 6,750. This came in tandem with a global decline of roughly $510 per ounce, as gold started the week at $5,405 and closed at $4,895.
Regarding pricing differentials, Embaby explained that the local market priced gold higher than global levels throughout Friday, with a gap ranging between EGP 300 and EGP 500, stressing that this situation is a factual reality.
He added that the market was given time to recalibrate prices in line with global benchmarks, but the extreme and rapid volatility in international prices—combined with real physical deliveries and a surge in demand—made it difficult for some market participants to immediately keep pace with these movements.
While acknowledging that such conditions could be temporarily understood, Embaby stressed that starting today, local prices should align with global levels, noting that the current gap between local and global pricing stands at around EGP 230.
He emphasized that if unjustified price discrepancies persist, the issue will be addressed transparently before the public, including clarifying attempts by some traders to avoid losses through unregulated practices, with all details presented clearly and without hesitation.
Embaby confirmed that sharp volatility did not lead to a complete halt in pricing or trading activity across the local market, except among traders who exploited the situation and turned to speculation. Those who operated based on their actual gold inventories continued pricing and trading normally.
He pointed out that the recent sharp pullbacks do not signal the end of the upward trend, expecting gold prices to resume gains after a period of relative calm.
Embaby advised consumers who purchased gold at elevated price levels to hold onto their assets to offset potential losses, amid continued positive expectations for gold prices through year-end.
Meanwhile, he noted that successive record highs in gold prices have triggered an unprecedented surge in local demand, exceeding the operational capacity of factories and companies operating in the sector. Demand has become heavily concentrated on bullion bars and gold coins as savings instruments, while demand for jewelry has declined sharply.
This pressure has forced some bullion manufacturers to revise delivery schedules, extending lead times from one or two days to between two and three weeks.
Globally, gold and silver prices experienced sharp sell-offs on Friday, with gold falling by more than 10% and silver plunging around 30% in one of the most violent correction sessions, following exceptional gains recorded in January.
Gold had posted its largest daily gain in history just two days before suffering its biggest daily loss, after rising 29.5% during January. Silver recorded monthly gains exceeding 68.5% after reaching all-time highs.
The sharp sell-off followed U.S. President Donald Trump’s announcement nominating Kevin Warsh as Chairman of the Federal Reserve, a move that strengthened the U.S. dollar and pushed Treasury yields higher, adding pressure on gold prices.
The U.S. Dollar Index rose 0.74% to 96.87, while the yield on the 10-year U.S. Treasury climbed to 4.247%.
At the same time, elevated U.S. inflation data supported the Federal Reserve’s decision to keep interest rates unchanged, amid growing concerns that inflationary pressures are becoming entrenched.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, said the strong January rallies in gold and silver made trading conditions more challenging, reducing liquidity and widening bid-ask spreads. He described the current sell-off as a healthy correction within a long-term bullish trend.
Analysts stressed that the fundamental drivers supporting gold remain intact, led by rising global debt levels, declining confidence in the U.S. dollar, and persistent geopolitical and trade risks. They noted that price pullbacks may present new buying opportunities, with expectations for the bullish trend in precious metals to extend through 2026.
Atlanta Fed President Raphael Bostic emphasized the need for patience in monetary policy, suggesting it should remain somewhat restrictive, noting that the full impact of tariffs on prices has yet to become clear and that inflation is expected to persist.
Meanwhile, the U.S. Bureau of Labor Statistics (BLS) reported that the Producer Price Index (PPI) for December rose 3% year-on-year, unchanged from November and exceeding expectations of a 2.7% increase. Core PPI, which excludes food and energy, climbed 3.3% year-on-year, above the prior month’s 3% reading and forecasts of 2.9%.
Global markets are now awaiting a series of key U.S. economic data releases and major central bank meetings next week, which could have a direct impact on gold and precious metals prices amid ongoing uncertainty over the monetary policy outlook.
On Monday, the Institute for Supply Management (ISM) manufacturing PMI is due, alongside the Reserve Bank of Australia’s monetary policy meeting.
Tuesday will see the release of U.S. Job Openings and Labor Turnover Survey (JOLTS) data, a key indicator of labor market strength.
On Wednesday, ADP will publish private-sector employment data, along with the ISM services PMI.
Thursday features monetary policy meetings by both the Bank of England and the European Central Bank, in addition to U.S. weekly jobless claims.
The week concludes on Friday with the U.S. nonfarm payrolls report and the preliminary University of Michigan consumer sentiment index—data expected to play a pivotal role in shaping interest rate expectations and gold price movements in the period ahead.
Follow the latest news on Google News
