Gold prices have seen a substantial rise in local markets, escalating by 80 EGP over the past week amid growing tensions in the Middle East.
According to a recent analysis by Saeed Embabi, the executive director of the online gold and jewelry trading platform “iSagha,” this rise is a response to the growing conflict between Iran and Israel, which has pushed gold prices to historic levels globally.
Throughout the past week, which concluded last Saturday, the price for a gram of 21-karat gold opened at 3200 EGP, peaked at 3300 EGP, and finally settled at 3280 EGP by the week's end. In comparison, on the international stage, gold prices increased by $13 per ounce—starting at $2330, reaching a high of $2430, and closing at $2343.
Embabi provided a detailed breakdown of the various karats in the local market: 24-karat gold reached 3749 EGP per gram, 18-karat stood at 2812 EGP, and 14-karat was approximately 2187 EGP. He also mentioned that a gold pound was valued at 26240 EGP.
Despite the general upward trend, gold prices dipped slightly by 70 EGP in Saturday’s trading, aligning with the weekend closure of the global market. Prices for 21-karat opened at 3210 EGP and closed at 3280 EGP.
The intensifying conflict between Iran and Israel has significantly influenced the gold market. Following Iran’s recent military strike, executed with drones as reported by Iranian state media, prices surged. This military action followed shortly after Israel's airstrike on the Iranian consulate in Syria. Embabi predicts that the anticipated Israeli retaliation could push gold prices to new heights as investors flock to gold, seeking a safe haven amidst the economic fallout from the war.
Embabi emphasized that the sharp rise in gold prices reflects not only the current geopolitical instability but also the broader trend of investors turning to safe-haven assets during times of economic uncertainty. He anticipates this trend will continue if hostilities in the region escalate, underscoring gold’s growing appeal as a protective investment in turbulent times.
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