Gold price today in Egypt: 21-karat gold exceeds 7000 Egyptian pounds, reaching historic levels

The Egyptian gold market and global stock exchanges witnessed dramatic and unprecedented shifts today, with gold prices surging sharply, driven by a wave of global economic changes. This significant increase coincided with the US dollar index falling to its lowest level in nearly four years, amid cautious anticipation from investors regarding the US Federal Reserve's decisions on the future of monetary policy and interest rates.

Record numbers in the Egyptian market

According to a report issued by the online gold and jewelry trading platform "iSagha," prices have reached unprecedented levels. Engineer Saeed Embaby, the platform's CEO, stated, "Gold prices in the Egyptian market have risen by approximately 195 Egyptian pounds in today's trading alone." The report detailed the price increases for different karats as follows:

• The price of a gram of 24-karat gold was recorded at approximately 8052 Egyptian pounds .
• The price of a gram of 21-karat gold (the most traded) reached 7045 pounds .
• The price of one gram of 18-karat gold reached approximately 6039 Egyptian pounds .
• a gold pound jumped to record about 56,360 pounds .

Gold breaks barriers globally

Globally, the situation was no less intense, with gold breaking the $5,300 per ounce barrier for the first time in its history. Mbappe noted that the price of gold on the global market jumped by approximately $189 to reach $5,273, before continuing its upward trend and touching the spot price of $5,309, thus achieving annual gains exceeding 22% since the beginning of the year.

Why is gold rising? (Economic context)

Historically, there has been a strong inverse relationship between gold and the US dollar; when the greenback weakens, gold becomes more attractive as a hedge and store of value, making it less expensive for holders of other currencies, which explains the current surge. This surge reflects the growing anxiety in global markets due to economic uncertainty and geopolitical tensions.

Expectations of interest rate cuts in the United States play a pivotal role in this scenario, as lower interest rates reduce the opportunity cost of holding gold, which does not generate a periodic return, thus enhancing its appeal as a safe haven for both investors and central banks.

The impact of US policies and the future of markets

Concerns about what is being described as a "crisis of confidence" in the dollar have accelerated selling of the US currency and a shift towards precious metals. This situation has been exacerbated by statements and policies associated with US President Donald Trump, which have raised serious concerns about the future of the dollar and the independence of the Federal Reserve, especially given hints of a desire within the White House to weaken the US currency in the future to support exports, a move that directly benefits gold.

These factors combined indicate that the gold market may continue its upward trajectory if current conditions persist, presenting consumers and investors with a new economic reality that requires a careful reading of the global and local financial landscape.