Marsad Al Dahab reported that gold prices in the Egyptian market rose during Thursday's trading session, in line with gains in global bullion prices, supported by ongoing geopolitical tensions in the Middle East and easing pressure on the U.S. dollar following the release of the minutes of the U.S. Federal Reserve's latest policy meeting. Meanwhile, local markets are closely watching the Monetary Policy Committee of the Central Bank of Egypt as it prepares to announce its interest rate decision, with broad expectations that rates will remain unchanged for a third consecutive meeting.
According to Marsad Al Dahab, the price of 21-karat gold—the benchmark in the Egyptian market—rose by approximately EGP 40 during Thursday's trading to around EGP 5,840 per gram, compared with EGP 5,800 at Wednesday's close. Meanwhile, spot gold gained about $23 to reach $4,105 per ounce, up from $4,082 at the close of the previous session.
The report added that 24-karat gold traded at approximately EGP 6,674 per gram, while 18-karat gold reached EGP 5,006 per gram. The price of the gold sovereign climbed to around EGP 46,720.
Gold had also finished Wednesday's session on a positive note after opening at EGP 5,770 per gram for 21-karat gold before closing at EGP 5,800, alongside a recovery in international gold prices late in the session.
The local premium remained stable at around EGP 113 per gram, supported by elevated import costs, movements in the U.S. dollar exchange rate, and continued investment demand for gold bars and sovereigns, helping domestic prices remain resilient despite ongoing volatility in global markets.
The report noted that Egyptian markets are closely awaiting the Central Bank of Egypt's interest rate decision, which comes at a particularly sensitive time amid renewed strength in the U.S. dollar against the Egyptian pound, persistent inflationary pressures, and investors' anticipation of the direction of monetary policy during the second half of the year.
Market expectations continue to favor keeping interest rates unchanged, as the central bank seeks to preserve exchange-rate stability and contain inflationary pressures while monitoring global and regional economic developments.
The report explained that the interest rate decision will have direct implications for the gold market. Keeping rates at current levels would support the attractiveness of local fixed-income instruments and help ease pressure on the Egyptian pound. On the other hand, any move toward lower interest rates could stimulate demand for gold as a preferred inflation hedge, particularly if accompanied by renewed weakness in the local currency.
Marsad Al Dahab reported that gold prices in the Egyptian market rose during Thursday's trading session, in line with gains in global bullion prices, supported by ongoing geopolitical tensions in the Middle East and easing pressure on the U.S. dollar following the release of the minutes of the U.S. Federal Reserve's latest policy meeting. Meanwhile, local markets are closely watching the Monetary Policy Committee of the Central Bank of Egypt as it prepares to announce its interest rate decision, with broad expectations that rates will remain unchanged for a third consecutive meeting.
According to Marsad Al Dahab, the price of 21-karat gold—the benchmark in the Egyptian market—rose by approximately EGP 40 during Thursday's trading to around EGP 5,840 per gram, compared with EGP 5,800 at Wednesday's close. Meanwhile, spot gold gained about $23 to reach $4,105 per ounce, up from $4,082 at the close of the previous session.
The report added that 24-karat gold traded at approximately EGP 6,674 per gram, while 18-karat gold reached EGP 5,006 per gram. The price of the gold sovereign climbed to around EGP 46,720.
Gold had also finished Wednesday's session on a positive note after opening at EGP 5,770 per gram for 21-karat gold before closing at EGP 5,800, alongside a recovery in international gold prices late in the session.
The local premium remained stable at around EGP 113 per gram, supported by elevated import costs, movements in the U.S. dollar exchange rate, and continued investment demand for gold bars and sovereigns, helping domestic prices remain resilient despite ongoing volatility in global markets.
The report noted that Egyptian markets are closely awaiting the Central Bank of Egypt's interest rate decision, which comes at a particularly sensitive time amid renewed strength in the U.S. dollar against the Egyptian pound, persistent inflationary pressures, and investors' anticipation of the direction of monetary policy during the second half of the year.
Market expectations continue to favor keeping interest rates unchanged, as the central bank seeks to preserve exchange-rate stability and contain inflationary pressures while monitoring global and regional economic developments.
The report explained that the interest rate decision will have direct implications for the gold market. Keeping rates at current levels would support the attractiveness of local fixed-income instruments and help ease pressure on the Egyptian pound. On the other hand, any move toward lower interest rates could stimulate demand for gold as a preferred inflation hedge, particularly if accompanied by renewed weakness in the local currency.
Geopolitical Tensions Revive Gold's Safe-Haven Appeal
According to Marsad Al Dahab, escalating military tensions in the Middle East have provided additional support for gold, as investors grow increasingly concerned about the possibility of a broader regional conflict and its potential impact on global energy markets and supply chains.
The report noted that rising oil prices, driven by the current geopolitical tensions, have revived fears of another wave of inflation, placing investors in a complex situation. While geopolitical risks enhance gold's appeal as a safe-haven asset, they could also encourage central banks to keep interest rates higher for longer, which in turn limits the precious metal's upside potential.
This explains the heightened volatility that has characterized the gold market in recent months. Gold is no longer driven solely by traditional safe-haven demand but has become increasingly influenced by expectations for interest rates, real yields, and the strength of the U.S. dollar.
Russia's Gold Reserves Decline for the Sixth Consecutive Month
In another development highlighting the pressures facing major economies, the Central Bank of Russia announced that the value of the country's gold reserves fell to $298.99 billion at the end of June, down from more than $300 billion a month earlier. Total international reserves also declined to $720.4 billion, compared with $747.4 billion in May.
The report noted that official data confirm a decline in both the value and volume of Russia's gold reserves for the sixth consecutive month. However, Russian authorities have not stated that the decline resulted from direct gold sales.
Despite the decline, Russia continues to hold one of the world's largest official gold reserves, underscoring gold's strategic role within the country's reserve management framework.
Marsad Al Dahab concluded that continued purchases of gold by central banks around the world are expected to provide long-term support for bullion prices.
However, in the short term, movements in Egypt's gold market will remain primarily driven by developments in the U.S. dollar exchange rate against the Egyptian pound, the Central Bank of Egypt's interest rate decision, and the future direction of U.S. monetary policy.
These three factors are expected to remain the key drivers of Egypt's gold market during the second half of the year, making the coming months one of the most critical periods for investors, traders, and the gold industry alike.
Follow the latest news on Google News
