• Home
• News

The Gold and Precious Metals Division of the Federation of Egyptian Industries, chaired by Ehab Wassef, is closely monitoring global gold market developments amid record-breaking price surges and growing investor appetite for safe-haven assets. This comes in parallel with the World Gold Council’s latest report, which revealed that annual investment demand reached historic levels in 2025, rising by 84% to approximately 2,175 tonnes.

In a statement issued on Thursday, the division noted that gold continues to gain strong upward momentum on global exchanges, driven by a rush toward safe-haven assets amid escalating geopolitical and economic uncertainty worldwide. The rally has also been supported by the US Federal Reserve’s decision to hold interest rates steady, reinforcing expectations of potential rate cuts in the coming period.

Spot gold prices rose by around 2.5%, reaching $5,551.79 per ounce after touching a high of $5,591.61, signaling an expanding wave of demand for precious metals as hedging and investment tools.

Ehab Wassef stated that current market developments are fully aligned with the World Gold Council’s findings, which point to a clear structural shift in demand. Institutional investment, alongside purchases of gold bars, coins, and exchange-traded funds (ETFs), is leading the market, while demand for jewelry has declined relatively due to record-high prices.

Current Price Surge Driven by Strong Fundamentals

Wassef emphasized that the current price surge is not merely a short-term speculative movement but is supported by solid fundamentals, including rising global government debt burdens, intensifying geopolitical tensions, and declining confidence in some major currencies. These factors, he said, are reinforcing gold’s position as a strategic asset within investment portfolios.

He added that gold’s breakthrough above the $5,000 level, followed by rapid acceleration beyond it within days, reflects the strength of investment demand and supports the World Gold Council’s expectations of continued inflows into gold ETFs and sustained demand for bullion and coins.

Wassef also highlighted that the Fed’s decision to keep interest rates unchanged, coupled with expectations of future cuts, has further enhanced gold’s appeal. “The lower real interest rates become, the more attractive gold is as a store of value,” he said, noting a direct link between the Fed’s latest decision and the ongoing price rally.

While acknowledging that the market may experience short-term technical corrections following the sharp gains, Wassef stressed that the overall trend remains firmly supported by strong fundamentals heading into 2026. He added that any potential price pullbacks could represent attractive buying opportunities for investors, as long as the current supportive factors remain in place.