Gold Division: Import Costs Become Part of Gold Pricing During Periods of Strong Demand

Eng. Lotfy Mounib, Vice Chairman of the Gold and Jewelry Division at the Federation of Egyptian Chambers of Commerce, said that gold prices in the Egyptian market are primarily determined by three key factors: the international gold price, the exchange rate of the U.S. dollar against the Egyptian pound, and the balance of supply and demand in the local market.

He explained that gold import costs can become an additional pricing factor during periods of strong domestic demand, particularly when local recycling is insufficient to meet the needs of manufacturers and traders, forcing companies to import gold to bridge the supply gap.

Mounib noted that importing gold involves a range of additional expenses, including securing foreign currency, banking transfer fees, shipping, insurance, and other costs associated with bringing the metal into the Egyptian market. These expenses are naturally reflected in the final price paid by consumers.

He emphasized that these import-related costs are not a permanent component of pricing but depend on the market's need for imported gold. When locally recycled gold is sufficient to meet demand, reliance on imports declines, reducing the impact of these additional costs on domestic prices.

He also pointed out that the Egyptian gold market has experienced a noticeable increase in demand in recent months, as many consumers shifted part of their savings into gold following the maturity of several high-yield savings certificates, boosting demand and increasing the need for imported gold.

Official foreign trade data support this trend. Imports of unwrought and raw gold during the first four months of 2026 surged to approximately US$1.84 billion, compared with about US$34.7 million during the same period of 2025, according to Egypt's Central Agency for Public Mobilization and Statistics (CAPMAS), marking one of the largest increases ever recorded in the country's gold imports.