Gold prices rose in Egypt during Tuesday’s mid-session trading, alongside gains in the international market, as the precious metal attempted to recover from its recent decline amid continued uncertainty over the Middle East, volatile oil prices, and expectations of a hawkish Federal Reserve.
The 21-karat gold price increased by EGP 15 compared with Monday’s close, reaching EGP 6,170 per gram. The 24-karat price stood at EGP 7,029, while 18-karat gold reached EGP 5,271. The gold pound was priced at EGP 49,200.
In the international market, spot gold rose by approximately $13 to $3,960 per ounce at the time of writing.
On Monday, 21-karat gold opened at EGP 6,160 per gram and closed at EGP 6,155. Meanwhile, the international gold price opened at $3,875 per ounce and ended the session at $3,947.
The US dollar edged lower against the Egyptian pound, trading at approximately EGP 55.36, helping limit pressure on domestic gold prices.
Oil and Dollar Movements Support Gold’s Recovery, While Rate Concerns Limit Gains
The international recovery in gold prices was supported by a sharp decline in oil prices during Monday’s session, following reports that Iran’s Supreme Leader had granted the government broader authority regarding negotiations. The development boosted hopes of a possible diplomatic understanding with the United States and eased concerns over potential disruptions to energy supplies in the Middle East.
Lower oil prices helped ease inflation concerns and the possibility of US interest rates remaining elevated for longer. Gold also benefited from a slight decline in the US dollar and renewed buying after the sharp sell-off that had pushed prices to their lowest levels in nearly a year.
According to data reported by Reuters, gold rose by approximately 2.1% during Monday’s session, recording its strongest daily gain in nearly two months.
However, oil prices recovered some of their losses on Tuesday following reports by The Wall Street Journal that the United States had launched strikes on Iran’s Qeshm Island. The developments renewed concerns over a wider conflict and possible disruptions to shipping and energy supplies through the Strait of Hormuz.
Rising oil prices could put renewed pressure on gold by increasing inflation concerns and strengthening expectations that the Federal Reserve will maintain a restrictive monetary policy.
The relationship between oil prices and interest rate expectations has remained a key driver of gold since the outbreak of the war in late February. Higher energy costs can intensify inflationary pressures, potentially prompting central banks, particularly the US Federal Reserve, to keep interest rates elevated or consider further increases.
The Federal Reserve raised interest rates by 25 basis points in September before holding them steady in October, while reiterating its commitment to restoring price stability.
Markets are pricing in approximately a 75% probability of another US rate increase in December, according to the CME FedWatch tool, limiting the scope for a stronger recovery in gold prices.
US Midterm Elections and Economic Data in Focus
Markets are also monitoring the US midterm elections scheduled for Tuesday and their potential implications for the dollar and US fiscal policy.
Norman Liebke, an analyst at Commerzbank, believes that a Republican loss of control of both chambers of Congress could place additional pressure on the dollar, while maintaining control of both chambers could provide support for the currency.
He also warned that renewed US military escalation against Iran could push energy prices higher and increase demand for safe-haven assets, including the US dollar.
Investors are also preparing for a busy week of US economic releases, beginning with the Job Openings and Labor Turnover Survey (JOLTS) on Tuesday and concluding with the nonfarm payrolls report on Friday. These indicators could provide further clues about the health of the US economy and the Federal Reserve’s future monetary policy.
Egyptian Gold Demand: Investment Products Gain Ground as Jewelry Purchases Decline
Separately, the World Gold Council’s Gold Demand Trends report for the third quarter of 2026, released on Tuesday, showed that Egyptian gold purchases, including jewelry, bars and coins, reached approximately 31.66 tonnes during the first nine months of the year, compared with 32.53 tonnes in the same period of 2025, representing a decline of 2.7%.
According to data through September 30, 2026, purchases consisted of 17.78 tonnes of gold bars and coins, including gold pounds, up 10.3% from 16.12 tonnes in the same period last year.
Jewelry demand, meanwhile, reached 13.88 tonnes, down 15.4% from 16.40 tonnes a year earlier.
During the first three quarters of 2026, Egyptian purchases of gold bars and coins amounted to 5.70 tonnes in the first quarter, 6.23 tonnes in the second quarter, and 5.85 tonnes in the third quarter.
On an annual basis, third-quarter purchases of bars and coins increased by 5% from 5.57 tonnes in the corresponding quarter of 2025. However, they declined by 6.1% compared with the second quarter of 2026.
Jewelry purchases followed a different trend, totaling 5.16 tonnes in the first quarter, 4.89 tonnes in the second quarter, and 3.83 tonnes in the third quarter.
Third-quarter jewelry demand fell 12.1% year on year from 4.35 tonnes and declined 21.6% quarter on quarter, marking the lowest quarterly level in Egypt in the past two years of the World Gold Council’s data series.
The figures highlight a continuing shift in Egypt’s gold demand patterns. Purchases of bars and coins remained above year-earlier levels in each of the first three quarters of 2026, while jewelry demand continued to decline.
In the third quarter alone, purchases of bars and coins exceeded jewelry purchases by 2.02 tonnes, reaching 5.85 tonnes compared with 3.83 tonnes for jewelry. In the third quarter of 2025, the gap stood at 1.22 tonnes, also in favor of bars and coins.
The figures reflect the continued preference among a segment of Egyptian gold buyers for bars and coins as savings and investment instruments, while jewelry demand remains under pressure from high prices and changing consumer purchasing power.