Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Gold Prices in Egypt: Calls for Fair Pricing Amid Unjustified Increases

Gold Prices

Sat 23 Mar 2024 | 09:02 PM
Waleed Farouk

Gold prices in Egypt have shown a degree of stability amidst the global market's weekend break. This stability comes despite the price of gold ounces reaching unprecedented levels following the U.S. Federal Reserve's decision to hold interest rates steady last Wednesday.

Saeed Embabi, Executive Director of the online trading platform "iSagha," highlighted the current state of the local gold market. As of today, the price for a gram of 21-carat gold stands at EGP 3020, reflecting a subtle increase from the end of last week when the price for an ounce of gold rose by 0.4% to $2165, after peaking at $2222 on March 20th.

Embabi provided further insights into the pricing of gold in different carats: 24-carat gold at EGP 3451 per gram, 18-carat at EGP 2589, 14-carat at EGP 2014, and a gold pound priced at EGP 24160.

Despite a drop of EGP 30 in prices during Friday's trading, with 21-carat gold closing at EGP 3020, down from an opening price of EGP 3050, global gold prices also saw a decrease, closing at $2165 per ounce from an opening of $2182.

Embabi criticized the local market for experiencing "unjustified rises" in gold prices, suggesting that these prices are not reflective of fair value, especially considering the decrease in global gold prices and the declining dollar exchange rate. He argued that the fair price for a gram of 21-carat gold should not exceed EGP 2850.

He also noted a discrepancy between local and global gold prices, emphasizing that recent hikes in the global market should not affect local pricing given the current influence of the dollar exchange rate on gold prices in Egypt.

Embabi concluded by pointing out that the Egyptian gold market still operates on a random pricing mechanism that lacks clear regulations or determinants, often subject to personal interests and whims, indicating a need for a more structured and fair pricing approach.