Global gold prices have seen a significant rise of 12.8% in the first half of 2024, while local gold prices in Egypt are on the verge of a 0.8% decline.
Saeed Embabi, CEO of "iSagha" – an online platform for trading gold and jewelry – reported that local gold prices have decreased by EGP 25 this year. At the start of the year, 21-carat gold was trading at EGP 3,175 per gram, peaked at EGP 4,000 in January, and now stands at EGP 3,150. On the global market, gold prices surged by $264, beginning the year at $2,062 per ounce, reaching a historic high of $2,451, and currently trading at $2,326.
Embabi noted that local gold prices remained stable during Saturday's trading, with 21-carat gold at EGP 3,150, coinciding with the weekend break in global markets. Over the past week, global gold prices rose by 0.3%.
He added that gold prices fell by EGP 10 during today’s trading compared to yesterday, with 21-carat gold at EGP 3,150 and global prices dropping $4 to $2,305 per ounce.
Embabi provided further details on gold prices, with 24-carat gold at EGP 3,600, 18-carat at EGP 2,700, and 14-carat at EGP 2,100. The gold pound stood at EGP 25,200. On Friday, local gold prices increased by EGP 5, with 21-carat gold starting at EGP 3,145, peaking at EGP 3,160, and closing at EGP 3,150, while global prices fluctuated between $2,326 and $2,339 per ounce.
The decline in demand for gold during the first half of the year has contributed to the decrease in local prices, especially after 21-carat gold hit its peak at the end of January. The local market experienced disruptions after security forces closed down the Goldsmiths’ Agency, halting gold trading.
Embabi mentioned that local consumers lost some confidence in the announced prices. This situation coincided with the announcement of high-interest certificates by Banque Misr and the National Bank of Egypt at a rate of 27%, which attracted significant liquidity away from the gold market. Over the past two years, the market saw unprecedented demand due to citizens seeking to protect their savings from currency devaluation.
He also pointed out that geopolitical tensions in the Middle East, including the Russia-Ukraine war and the genocidal campaign by Israeli forces in Gaza, have increased global demand for gold, pushing prices higher. Additionally, expectations of a US Federal Reserve interest rate cut in 2024 propelled gold prices to a record high of $2,451 per ounce on May 20.
In related news, global gold prices fell from their daily highs at the close of the week under pressure from rising US Treasury yields. Gold experienced price volatility after the inflation report showed progress in reducing inflation, boosting hopes that the US Federal Reserve would cut interest rates in 2024. Gold reached its highest level in four days at $2,339 before retreating.
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