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Gold prices in the local market recorded weekly gains of 0.5%, in parallel with a rise of approximately 1.6% in global spot prices, supported by US inflation data that strengthened expectations for the start of an interest rate–cutting cycle during the first half of the year, according to a report issued by the iSagha platform.

Engineer Saeed Embaby, Executive Director of iSagha, stated that 21-karat gold rose by around EGP 35 during the week, opening at EGP 6,675 per gram and closing at EGP 6,710. Globally, gold prices increased by approximately USD 78 per ounce, rising from USD 4,965 to USD 5,043 by the end of the week.

Meanwhile, 24-karat gold recorded about EGP 7,669 per gram, 18-karat gold reached approximately EGP 5,751, and the gold pound was priced at around EGP 53,680.

US Inflation Supports Monetary Easing Path

The gains were driven by data showing a slowdown in US inflation. The U.S. Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 2.4% year-on-year in January, below market expectations of 2.5% and down from 2.7% in December. Core inflation, which excludes food and energy, remained steady at 2.5%, compared with 2.6% previously.

These figures reinforced market expectations that the Federal Reserve may begin cutting interest rates as early as June, particularly as inflationary pressures continue to ease after peaking at 3% in September.

However, US non-farm payroll data showed the addition of more than 130,000 jobs in January, with the unemployment rate declining to 4.3%, reflecting continued labor market resilience and giving the Federal Reserve room to remain cautious before making a final decision on rate cuts.

Market expectations for a 25-basis-point rate cut in June rose to around 55%, alongside a decline in US 10-year Treasury yields to 4.06%, down 14 basis points during the week, providing direct support to gold prices.

Geopolitical Shifts and Monetary Repositioning

In a notable development, an internal Kremlin memo—reported by Bloomberg—revealed proposals for Russia to return to dollar-based settlement systems as part of broader economic partnerships with the administration of Donald Trump, signaling a strategic reassessment after years of reducing reliance on the US dollar.

Conversely, China continues to reduce its exposure to US assets, with official holdings of US Treasury bonds falling to USD 682.6 billion—the lowest level since 2008.