Gold continues to appear a sound investment as its price, locally and globally, continues to surge to levels described by some experts as “historic”.
In January, the price of a gram of gold rose by around LE1,000 in Egypt since the beginning of the year.
On 27 January, the price of a gram of 24-carat gold stood at around LE7,700, 21-carat at around LE6,700, and 18-carat at around LE5,800. A gold pound (eight grams) was priced at LE54,240. Globally, an ounce (28 grams) of 24-carat gold reached $5,100.
This means gold prices have nearly doubled over the past year. On 1 January 2025, a gram of 24-carat gold was priced at LE4,251, 21-carat at LE3,720, and 18-carat at LE3,188. A gold pound stood at LE39,760, and an ounce at $2,625.
A month before US President Donald Trump’s winning a second term in office, an ounce had stood at $2,700, noted Lotfi Mounir, deputy head of the Gold and Jewellery Division at the Federation of Egyptian Chambers of Commerce.
“When Trump took office, people thought more peace would prevail, as he had spoken about resolving the Russia-Ukraine war. This would have ushered in a more favourable climate for trade and investment, reducing the need to hold gold as a store of value. On this basis, gold prices fell by $70,” Mounir said.
“However, once Trump assumed office in January, he launched economic conflicts with the European Union, China, and Mexico and signalled ambitions to annex Canada and make it a US state,” he added.
“Instead of containing the war between Russia and Ukraine, tensions escalated. Trump gave the green light to Israel to strike Iran and Qatar, spreading fear of a third world war. Therefore, people resorted to gold to preserve their wealth,” he stated.
With the rise in demand for gold, central banks have increased their bullion reserves at the expense of the dollar, viewing gold as the world’s premium currency, historically and globally. Combined with public anxiety, these factors drove gold prices even higher throughout the past year, Mounir explained.
Given the uncertain outlook, Mounir expects gold prices to continue climbing should current conditions persist. “Any change in US policy would be reflected in prices, leading to a marked decline,” he stated.
With the fall of returns on bank savings certificates, more people are also redirecting their savings towards gold, not merely as a store of value, but also as a hedge against future price increases, said Hoda Al-Mallah, director-general of the International Centre for Economic Consultations and Feasibility Studies and a faculty member at the Arab Academy for Science, Technology, and Maritime Transport.
This reflects people’s anxiety over the depreciation of the pound and adds more pressure on the gold market, she stated.
Economist Khaled Al-Shafei has a different view. He said that a large segment of Egyptians prefers to buy certificates of deposit, even with their declining yields, in order to secure a monthly income, even if this is less than it might be.
Al-Mallah stated that issuing savings certificates with higher yields may decrease demand for gold and therefore also its price.
Nonetheless, she expects that given ongoing global and domestic financial instability the price of gold is likely to remain high in the near term as investors are attracted towards safe assets.
The markets, however, may see some fluctuations in response to shifts in monetary policy or an improvement in exchange rates, she added.
Juan Carlos Artigas, head of Global Research at the World Gold Council, said that gold prices in 2025 were driven by four main factors and the same forces that are likely to shape both the direction and magnitude of price movements in 2026.
Artigas told the media that gold had outperformed most markets in 2025 due to unprecedented geopolitical and geoeconomic shifts, the weakness of the dollar, and the slight decline in interest rates.
He added that these factors, along with the positive returns on gold, have increased demand for the precious metal.
Central banks continue to buy gold, Artigas said, even if at a slower pace compared with the previous two years. This has also kept the momentum of gold buying strong, he added.
* A version of this article appears in print in the 29 January, 2026 edition of Al-Ahram Weekly
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