Local Gold Prices Dip by 30 EGP in a Week Amidst Geopolitical Uncertainty

Gold prices in Egypt have witnessed a significant decline of 30 Egyptian Pounds (EGP) in the local markets over the past week. In contrast, the global gold market experienced a contrasting trend, with the price of an ounce increasing by 0.2%. This unexpected surge in global gold prices is attributed to heightened concerns surrounding the escalating conflict in the Middle East, particularly due to airstrikes in Yemen, which have prompted a surge in demand for gold as a safe haven.

Saeed Embabi, the CEO of "iSagha," an online platform for gold and jewelry trading, reports that gold prices have fallen by 30 EGP. At the beginning of the week, a gram of 21-carat gold opened at 3,310 EGP but closed at 3,280 EGP by Saturday evening. Meanwhile, the price of an ounce of gold increased by approximately 4 dollars, starting at $2,045 and closing at $2,049.5.

Embabi also provides insights into other gold categories, indicating that 24-carat gold stands at 3,749 EGP per gram, 18-carat gold is priced at 2,812 EGP per gram, 14-carat gold comes in at around 2,187 EGP per gram, and the gold pound reached a figure of approximately 26,240 EGP.

It's worth noting that gold prices experienced a 25 EGP increase in the local markets during trading last Saturday. A gram of 21-carat gold began the day at 3,255 EGP and closed at 3,280 EGP, coinciding with the weekly closure of the global stock exchange.

Embabi highlights the unique challenges the gold market faced in price dissemination yesterday, with jewelry agencies and the raw gold market temporarily closing. However, iSagha managed to publish prices using artificial intelligence, introducing a new pricing method based on the platform's available data, with an error rate not exceeding 5%.

Furthermore, Imbabi emphasizes the role of geopolitical tensions in the recent surge in global gold prices. The airstrikes conducted by the United States and Britain against Houthi rebels in Yemen triggered this rise, marking a clear example of how international events can impact gold prices. Previously, gold prices had declined following the release of US inflation data, indicating an increase in the Consumer Price Index in December. This fueled expectations of the Federal Reserve implementing further interest rate hikes, boosting gold's appeal as a hedge against potential currency devaluation.