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Gold Prices Surge, 21-Karat Gold Reaches EGP 3,600


Gold Prices, gold

Sat 12 Oct 2024 | 08:50 PM
Waleed Farouk

Gold prices in Egypt surged on Saturday, coinciding with the global market’s weekend closure. This uptick follows a 1.1% rise in global gold prices on Friday, driven by U.S. inflation data that bolstered the likelihood of further interest rate cuts this year. The heightened demand for gold as a safe-haven asset due to ongoing geopolitical tensions also supported the price increase.

Saeed Embabi, CEO of "iSagha," an online platform for trading gold and jewelry, reported that gold prices in Egypt rose by EGP 5 during Saturday’s trading. The price of 21-karat gold—the most commonly traded in Egypt—reached EGP 3,600 per gram. Meanwhile, the global price of gold closed at $2,657 per ounce, achieving a weekly gain of $1, or 0.2%.

Friday’s rise in gold prices was significant, with the global market showing a 1.1% increase after reaching a low of $1,604 per ounce earlier in the week. This rally helped gold erase its weekly losses. Embabi also noted that 24-karat gold now sells for EGP 4,114 per gram, 18-karat gold is priced at EGP 3,086, and 14-karat gold at EGP 2,400. The price of a gold pound (an 8-gram gold coin) reached EGP 28,800.

On Friday, gold prices in Egypt rose by EGP 32. The 21-karat gold started the day at EGP 3,563, peaked at EGP 3,600, and ended at EGP 3,595. Globally, gold saw a $28 decline during the week, opening at $2,629 per ounce and closing at $2,657.

Embabi attributed the recovery in gold prices to recent U.S. inflation data, which increased the likelihood of further interest rate cuts. He also emphasized that ongoing global economic uncertainties and geopolitical tensions are likely to sustain strong demand for gold as a safe-haven asset, potentially pushing prices to new record highs.

In 2024, gold prices have surged by 29% globally, while local prices in Egypt have risen by more than 13%, positioning gold as one of the best-performing commodities this year.

The U.S. Department of Labor also reported Friday that the Producer Price Index (PPI) increased by 0.1% in September, following a 0.2% rise in August. The latest inflation data aligned with expectations, reinforcing the economic outlook that further interest rate cuts are on the horizon.