Gold prices in local markets rose noticeably by mid-day trading on Wednesday, in tandem with a significant increase in global spot prices. The rise was driven by escalating geopolitical tensions and a weakening U.S. dollar, which reinforced the appeal of the yellow metal as a safe haven for investors.
Gold prices in Egypt increased by EGP 25 during today’s trading session compared to Tuesday’s closing, with the 21-karat gram reaching EGP 4,720. Meanwhile, the global ounce rose by $33 to reach $3,385.
The 24-karat gold gram was priced at EGP 5,394, the 18-karat gram at EGP 4,046, and the gold pound recorded approximately EGP 37,760.
Geopolitical Tensions Bolster Demand for Gold
Geopolitical tensions between the United States and China have intensified, particularly after U.S. President Donald Trump announced the doubling of tariffs on steel and aluminum imports to 50%. This reignited fears of a renewed trade war between the two major economies. Additionally, ongoing developments in the Russia–Ukraine conflict have increased uncertainty in global markets, prompting investors to seek safety in gold.
Weak U.S. Dollar Supports Gold Prices
The U.S. dollar declined significantly, with the dollar index falling by 0.4%, making gold more attractive to investors dealing in other currencies. It is worth noting that gold typically moves inversely to the dollar, and a weaker greenback tends to boost demand for the precious metal.
Outlook for Gold Prices
With persistent geopolitical tensions and continued dollar weakness, analysts expect gold prices to remain supported in the near term. Central bank monetary policies—especially those of the U.S. Federal Reserve—will be a key factor in determining the direction of gold markets going forward.
Today's increase in gold prices is attributed to a combination of factors, most notably rising geopolitical risks and a weakening U.S. dollar, which have enhanced gold's appeal as a safe haven amid global economic uncertainty.
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