Gold Prices Surge in a Time of Uncertainty

Updated 12/27/2025 9:00:00 AM

Gold has long been a vital asset for individual consumers, investors, and governments alike. It is widely regarded as a safe haven during periods of uncertainty, an effective hedge against inflation, a core component of central bank reserves, and a critical input for technological and electronic industries.

Recent global developments, including escalating geopolitical tensions in both the East and the West, persistently high inflation, a weakening US dollar, and increased gold purchases by central banks, have pushed international gold prices to record highs in December 2025.

In this Factsheet, we highlight the recent surge in international gold prices, while shedding light on the local case in Egypt.

In 2025, global gold prices rose by 69% year to date, marking the highest increase recorded since 1979. For the first time in history, gold prices exceeded $4,497 per ounce on December 23rd.
By the end of 2024, total global gold extraction reached approximately 216,300 tons, with an estimated market value of $31.3 trillion, based on a price of $4,497 per ounce. Nearly 45% of this stock is held in the form of jewelry, while coins and bars account for about 22.5%. Central bank reserves represent roughly 17.5%, with the remaining 15% used in other applications.
Proven gold reserves still held in mines are estimated at around 132,100 tons, with a total value of approximately $19.1 trillion.
In the Egyptian market, gold prices have shown significant volatility since the start of 2025, along with an overall upward trend. The purchase price of 21-karat gold increased by 19% from EGP 3,408 per gram in January 2025 to EGP 5,708 in December 2025. Prices of both 21-karat and 18-karat gold hiked by 17.7% over the same period.
Egypt relies on the Sukari gold mine for its commercial gold production. In the first half (H1) of 2025, the mine produced 246,000 ounces, representing a 9% year-on-year (YoY) growth rate. Production is expected to increase by 14.74% to 506,000 ounces annually through 2032.
During the first 10 months of 2025, Egypt exported gold and jewelry worth $6.76 billion, up from $2.63 billion in the same period in 2024, marking an unprecedented 157% increase. Exports are projected to exceed $7.05 billion by the end of 2025.
In November 2025, Egypt’s international reserves were valued at $50.2 billion, with gold accounting for $17.25 billion, or 34.4% of the country’s total foreign reserves.
Gold price forecasts for 2026 remain strongly bullish. Leading financial institutions, including P. Morgan, Morgan Stanley, and Goldman Sachs, project prices to approach or exceed the range of $4,500–5,000 per ounce, with some scenarios pointing to levels above $5,000 by late 2026.

By: Amina Hussein