In the wake of exchange rate liberalization, Egypt's local gold market experienced a period of relative calm during Thursday's trading sessions, despite a continuous rise in global gold prices.
The international market saw gold reaching its highest level ever, surpassing the previous record of $2,152 set on December 4, 2023.
Saeed Embabi, CEO of the online gold and jewelry trading platform "iSagha," noted that the local gold market is currently experiencing a phase of relative calm, with the price of 21-karat gold per gram reaching 3,250 EGP.
This follows a period of market volatility and sharp increases after the Central Bank's Monetary Policy Committee decided to raise interest rates by 6% and devalue the Egyptian pound against the dollar, pushing it above 50 EGP in banks.
Embabi further detailed that the price for 24-karat gold per gram stood at 3,714 EGP, while 18-karat and 14-karat gold were priced at 2,786 EGP and 2,167 EGP respectively.
The gold pound was quoted at 26,000 EGP, as the ounce price on the international market increased by about $10, reaching $2,158.
On the previous day, Wednesday, gold prices in Egypt surged by 270 EGP, opening at 2,980 EGP for 21-karat per gram and closing at 3,250 EGP.
Concurrently, global gold prices rose by $21, with the ounce opening at $2,127 and closing at $2,148.
Embabi explained that local gold prices have responded to the exchange rate liberalization, a significant factor in determining local gold prices alongside global ounce prices and supply and demand dynamics.
Despite local prices being approximately 245 EGP higher than global ounce rates, determined against a dollar exceeding $53, Embabi suggested that exchange rate stability could lead to a stabilization of gold prices, aligning them more closely with international rates.
He anticipates a potential price increase shortly, influenced by the rising ounce price on the global market, amid expectations of interest rate cuts following remarks by Federal Reserve Chairman Jerome Powell before Congress regarding a potential early interest rate reduction if inflation recedes, which has bolstered gold's position against a weakening dollar.
Market observers are awaiting the completion of Powell's congressional testimonies and the release of U.S. employment data this Friday
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