Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Egypt Sees Gold Price Drop, 21-karat Hits 3800 EGP

Gold Prices

Sat 03 Feb 2024 | 08:04 PM
Waleed Farouk

Gold prices in Egypt have experienced significant fluctuations, with a notable decrease in local markets coinciding with the weekend closure of the global exchange.

Saeed Embabi, CEO of the "iSagha" online platform for gold and jewelry trading, reported a significant reduction in gold prices by approximately 200 EGP, setting the rate for 21-karat gold at 3800 EGP per gram. This decline starkly contrasts the global trend where gold prices increased by 1%, or $21, over the past week, driven by market confidence in the anticipated reduction of US Federal Reserve interest rates starting March.

The price for 24-karat gold dropped to 4343 EGP per gram, while 18-karat and 14-karat gold settled at 3257 EGP and 2534 EGP per gram, respectively. The gold pound now stands at about 30400 EGP. Speculations about the injection of dollar liquidity into the local market, following a preliminary agreement between Egypt and the IMF, along with Emirati investments in the Ras Al Hekma area, have contributed to the devaluation of the dollar exchange rate in the local market.

Embabi foresee a continuing downtrend in gold prices, attributed to growing confidence in economic stability, especially after the Central Bank of Egypt's strategic move to hike interest rates by 2% to combat inflation and minimize the external money supply. These adjustments have set the overnight deposit and lending rates, along with the central operation rate, at 21.25%, 22.25%, and 21.75% respectively, marking a significant step in Egypt's ongoing economic reform efforts.