Gold Prices in Egypt Jump by EGP 110 in One Week

Gold prices in local markets rose by 3% over the past week, with the global ounce price increasing by 2.4%, driven by a weakening dollar, declining US Treasury yields, and heightened demand for safe-haven assets amid geopolitical tensions. Expectations of global monetary easing and central banks cutting interest rates more aggressively also contributed to the rise.

Saeed Imbaby, Executive Director of the online gold and jewelry trading platform "iSagha," reported that gold prices in local markets increased by EGP 110 last week. The price of 21-carat gold started the week at EGP 3,600 per gram and closed at EGP 3,710. Globally, gold prices climbed by $64 per ounce, with the ounce opening at $2,657 and closing at $2,721.

Imbaby added that the current price for 24-carat gold is EGP 4,240 per gram, while 18-carat gold stands at EGP 3,180, and 14-carat gold at EGP 2,474. The price of the gold pound reached EGP 29,680.

On Saturday, gold prices in local markets rose by EGP 25, with 21-carat gold opening at EGP 3,685 and closing at EGP 3,710, coinciding with the global market’s weekend closure.

According to iSagha’s data, gold prices have surged by 16% in local markets since the beginning of 2024, increasing by EGP 535. Meanwhile, global gold prices rose by $659 per ounce, reflecting a 32% increase, supported by central bank purchases and the expectation of the end of monetary tightening policies. Additionally, geopolitical conflicts in the Middle East and individual investors’ purchases have bolstered demand.

Imbaby noted that the global rise in gold prices is linked to the weaker dollar and lower US Treasury yields, as demand for gold increases amid concerns about geopolitical tensions and upcoming US elections. Expectations that central banks will accelerate interest rate cuts globally are also driving the surge.

Looking ahead, Imbaby predicted that gold prices would continue to rise as central banks conclude their monetary tightening cycles and shift toward more aggressive interest rate cuts.

In related news, markets are closely monitoring several key events this week, including the IMF meeting on Monday, the BRICS summit starting Tuesday, the Bank of Canada’s monetary policy meeting on Wednesday, US existing home sales data, weekly jobless claims, and the PMI survey for manufacturing and services on Thursday.