Weekly Gains of 1.6% in the Ounce Push Gold Higher Locally Despite Global Market Holiday

Gold prices in the local market recorded a notable increase during Saturday’s trading, coinciding with the closure of global exchanges, after a volatile week ended with strong gains for the ounce, supported by U.S. economic data that reinforced bets on interest rate cuts.

Engineer Saeed Embabi, CEO of the iSagha platform, said gold prices rose by around EGP 10 per gram. The widely traded 21-karat gold reached approximately EGP 6,730 per gram, while 24-karat gold stood at EGP 7,691 and 18-karat at EGP 5,769. The gold pound coin was priced at about EGP 53,840.

Globally, the ounce closed the week at $5,043, posting weekly gains of nearly $78, representing an increase of around 1.6%.

Sharp Volatility and Swift Recovery

Last Thursday’s session witnessed a dramatic move, as gold suddenly dropped from $5,068 to $4,889 within roughly 20 minutes, in a rapid selloff that unsettled investors despite the absence of a clear geopolitical or economic catalyst.

However, the yellow metal quickly recovered its nearly 2% losses, reclaiming the $5,000 level and ending the week at $5,043—signaling sustained demand at lower price levels.

U.S. Inflation Data Reinforces Rate-Cut Bets

The main support came from U.S. inflation data. The U.S. Bureau of Labor Statistics reported that the Consumer Price Index rose 2.4% year-on-year in January, below expectations of 2.5% and down from 2.7% in December.

Core inflation, which excludes food and energy, stood at 2.5% annually, in line with forecasts and slightly lower than the previous 2.6% reading.

These figures strengthened market expectations that the Federal Reserve could begin a monetary easing cycle in June, particularly as inflationary pressures have gradually eased from their September peak of 3%.

Labor Market Adds Balance to the Outlook

On the other hand, nonfarm payroll data showed the addition of more than 130,000 jobs in January, while the unemployment rate fell to 4.3%, highlighting continued labor market resilience and giving the Federal Reserve more room to delay rate cuts if needed.

Investors are now awaiting the minutes of the Federal Open Market Committee meeting, along with durable goods orders, housing indicators, weekly jobless claims, and the Personal Consumption Expenditures index—the central bank’s preferred inflation gauge.

June Bets Rise as Yields Retreat

Expectations for a 25-basis-point rate cut in June climbed to around 55%, according to Prime Market Terminal data, as U.S. 10-year Treasury yields declined to 4.06%, down 14 basis points over the week—creating a supportive environment for gold prices.

Global Monetary Shifts and Heightened Volatility

In a notable development, an internal Kremlin memo—reported by Bloomberg—outlined proposals for Russia to return to the U.S. dollar settlement system as part of broader economic partnerships with the administration of Donald Trump. The move would mark a significant shift after years of de-dollarization policies.

The proposals reportedly include joint projects in energy and critical minerals, partnerships in liquefied natural gas and oil, and cooperation in strategic sectors such as nuclear energy and aviation.

In contrast, China is moving in the opposite direction, reducing its combined holdings of U.S. assets to around $1.56 trillion, with official Treasury holdings declining to $682.6 billion—the lowest level since 2008—alongside official encouragement to increase gold reserves.

2026: A Year of Record Volatility

Markets have experienced unprecedented swings in recent days. Gold fell 21% to $4,400 before rebounding to $5,000 within less than 48 hours, marking a sharp recovery exceeding 17%. Earlier in the month, daily gains of nearly 11% and 9% were also recorded.

According to Lars Hansen, Head of Research at The Gold & Silver Club, the current environment represents a “golden era for trading,” as volatility offers exceptional opportunities for those capable of reading trends and managing risk effectively.

Against this backdrop, markets appear to be repricing the global monetary system in real time, amid diverging strategies among major powers—some signaling a return to the dollar, others strengthening gold reserves.

As uncertainty intensifies, gold remains the primary beneficiary, anchored in its historical role as a safe haven during periods of major global transformation.