Gold Prices Climb Sharply in 2025 as Global Uncertainty Fuels Investor Demand

CAIRO – 23 March 2025: Gold prices have seen a strong surge both in Egypt and globally since the beginning of 2025, according to Ihab Wassef, Chairman of the Gold and Precious Metals Division at the Federation of Egyptian Industries.

In the local market, the price of 21-karat gold — the most widely traded in Egypt — has risen from EGP 3,720 to EGP 4,280 per gram, reflecting a 15.02% increase, or EGP 560, since January.

Wassef attributed this upward trend to a broader international rally in gold prices, driven by heightened economic and political volatility. Key contributors include intensifying global trade tensions, particularly the ongoing trade war initiated by U.S. President Donald Trump, and rising geopolitical conflicts across various regions, both of which have heightened demand for gold as a safe-haven asset.

On the global stage, gold prices have increased by 15.2% so far this year. The price of gold has remained steadily above the $3,000 per ounce mark, with a 5.9% rise recorded since early March alone.

Looking forward, Wassef predicts that gold may continue its upward trajectory, potentially reaching $3,200 per ounce within the next six months, citing projections from top analysts and international financial institutions.

He also pointed to easing monetary policies by major central banks — including the U.S. Federal Reserve and the European Central Bank — as a key driver supporting gold’s momentum. As interest rates decline, the cost of holding gold becomes more favorable, encouraging increased investor demand.

Another influential factor is the accelerating pace of gold purchases by central banks around the world. Wassef noted that these institutions are actively diversifying their reserves in response to ongoing global economic instability, reducing their dependency on foreign currencies.

He concluded by emphasizing that a mix of geopolitical unrest, trade friction, and soft monetary policy is reinforcing gold’s status as a store of value. As global uncertainty continues, he expects the bullish trend in gold to extend into the months ahead.