The Gold and Precious Metals Division of the Federation of Egyptian Industries confirmed that last week witnessed radical shifts in global and local markets. The global gold price reached a record high of $3,245 per ounce, while the local price of 21-karat gold rose to EGP 4,710 per gram before declining to EGP 4,665, driven by increased demand for the precious metal as a safe haven in the face of economic and political challenges.
The division's weekly report indicated that escalating trade tensions between the United States and China were the primary driver of the rise in gold prices, especially after China raised tariffs on US imports to 125%. This move prompted investors to abandon high-risk assets and turn to safe havens.
The division noted that the US dollar hit its lowest levels in years, given its inverse relationship with gold. US government bonds also experienced a sharp decline in demand, confirming that even after the bonds' rebound, they failed to attract investors, who preferred to shift their investments to gold as a safer investment instrument.
She continued: Weak US inflation data for March has reinforced expectations that the Federal Reserve will cut interest rates at its June meeting, reducing the appeal of fixed-income instruments. She emphasized that the lower opportunity cost of holding gold has prompted institutional investors to pump billions of dollars into gold-backed funds, with inflows exceeding $21 billion during the first quarter of 2025.
The division expects the global price of gold to continue rising after surpassing the $3,200 per ounce barrier, stressing that geopolitical tensions and central bank demand will keep gold a focus for investors, and that the price could still reach $3,500 by the end of 2025 in the absence of radical solutions to the trade crises.
In contrast, the Gold and Metals Division confirmed that despite expectations of a rise in the medium and long term, there are indications of an imminent decline and correction in price movement on the global stock exchange, especially with the emergence of technical indicators indicating that prices have reached overbought areas.
