Gold bullion prices experienced a notable surge of 1.8% during the previous week, driven by various economic factors and market dynamics. This increase in gold prices was attributed to a combination of safe-haven investments and the release of a US employment report that indicated lower-than-expected job creation figures in February. The implications of this report suggest a potential interest rate cut by the Federal Reserve later in the year.

The global price per ounce of gold saw a significant uptick, climbing to $2,909 from an opening of $2,873, with a peak at $2,930 per ounce. Despite hovering below the resistance level of $2,930, gold failed to gather enough momentum to surpass this threshold and approach the recent peak of $2,956 per ounce.

The US employment data revealed an addition of 151,000 jobs in February, falling short of the anticipated 160,000 jobs, while the unemployment rate slightly exceeded expectations at 4.1%. This data, coupled with the US dollar index dropping to a four-month low, contributed to gold’s positive performance throughout the week.

The uncertainty surrounding President Biden’s trade policies has led to an increased demand for gold as a safe asset and hedge against potential inflation resulting from these policies. Federal Reserve Chair Jerome Powell emphasized a cautious approach, stating that the Fed would evaluate the impact of current policies before making any adjustments to interest rates. Powell highlighted the significance of policy changes in areas such as trade and immigration, underscoring their broader implications on economic and monetary policies.

China bolstered its gold reserves in February, marking the fourth consecutive month of acquisitions by the Chinese central bank. This move, along with steady inflows into global gold-backed investment funds, contributed to the overall positive sentiment surrounding gold as an investment option.

Locally, gold prices in Egypt reflected the global trend, benefiting from the rise in international gold prices and the gradual appreciation of the US dollar against the Egyptian pound. The week concluded with a positive trajectory in domestic gold prices, with 21k gold trading at EGP 4,120 per gram.

Looking ahead, forecasts suggest that global gold prices may continue to be influenced by factors such as the US dollar performance, geopolitical uncertainties, and ongoing trade policies. While gold closed below the $2,930 resistance level, maintaining a position above $2,900 per ounce could pave the way for another attempt to breach higher levels in the coming week, possibly targeting the $2,950–$2,960 range per ounce.