Gold Prices Surge Amid Middle East Tensions, Near $5,200 per Ounce
Gold prices climbed in both local and global markets on Wednesday, supported by ongoing geopolitical tensions in the Middle East and their potential impact on the global economy, according to the platform iSAGHA.
The platform’s CEO, Eng. Saeed Embaby, reported that the price of 21-carat gold rose by EGP 60 to reach EGP 7,340 per gram, while the international gold ounce jumped $108 to $5,195. Meanwhile, 24-carat gold traded at EGP 8,389, 18-carat at EGP 6,291, and the Egyptian gold pound approached EGP 58,720.
The surge follows the closure of the strategic Hormuz Strait, a key global energy passage, after Iran targeted critical energy infrastructure and warned of halting oil flows. This pushed oil prices to their highest levels since June 2025, stoking fears of a new energy crisis that could accelerate inflation and potentially prompt the U.S. Federal Reserve to slow or reconsider interest rate cuts.
Investors are also awaiting key U.S. economic data, including ADP private employment figures and the ISM services PMI, while market focus remains on escalating tensions involving the United States, Israel, and Iran.
Historic Leap Above $5,400
Gold surged to record highs on March 2, 2026, exceeding $5,400 per ounce, peaking at $5,419.32 amid heightened safe-haven demand and increased purchases by central banks in China, India, and Turkey. However, profit-taking pressures pulled prices back toward $5,180 in the following days, highlighting gold’s sensitivity to geopolitical developments.
Middle East Turmoil Boosts Dollar
Recent analysis by Reuters indicated that gold underperformed as a safe-haven asset during the latest escalation, falling 4% in one session, while silver dropped nearly 10%. Conversely, the U.S. dollar index strengthened despite declines in U.S. equities and bonds, reflecting a renewed “hedge premium” for the dollar amid rising oil prices and global liquidity demand.
Reassessing the “Dollar Decline” Bets
Despite gold being one of 2026’s top-performing assets before the latest spike, the dollar’s resurgence amid severe geopolitical stress reopened debates on its global dominance. Many investment portfolios increased liquidity and took profits from assets with recent gains. While long-term structural factors may support future gold appreciation, this week’s movements confirmed that safe-haven dynamics remain fluid, with the U.S. dollar retaining its position as the preferred refuge during crises.