Gold Prices Decline in Egypt Amid Global Market Uncertainty

Gold prices in Egypt's local market continued to fall on Tuesday, reflecting a broader trend in global markets where gold prices have also dipped. The decline comes as investors focus on upcoming economic data that could influence the U.S. Federal Reserve's decisions on interest rates.

According to Saeed Embabi, CEO of the online gold trading platform "iSagha," the price of 21-karat gold, which is the most popular in Egypt, dropped by EGP 25 today, bringing the price per gram to EGP 3,385. This decrease follows a similar drop in global gold prices, with the price per ounce falling by $13 to $2,485.

Other gold rates in Egypt also saw reductions: 24-karat gold is now priced at EGP 3,869 per gram, 18-karat gold at EGP 2,901, and 14-karat gold at EGP 2,257. Additionally, the price of the gold pound—a common form of gold investment in Egypt—fell to EGP 27,080.

On Monday, the local market saw a steep decline, with 21-karat gold prices dropping by EGP 35. The price opened at EGP 3,445 per gram and closed at EGP 3,410. Meanwhile, global gold prices decreased by $5 during the same period, with an ounce dropping from $2,503 to $2,498.

Despite these recent drops, data from "iSagha" shows that gold prices had risen by EGP 135 in Egypt during August. The price of 21-karat gold started the month at EGP 3,310, reached a peak of EGP 3,500, and ended the month at EGP 3,445. Globally, gold prices saw a $54 increase in August, with the price per ounce starting at $2,449, peaking at $2,532 on August 20—marking the highest point in gold’s history—and closing the month at $2,503.

Embabi explained that the recent decline in gold prices is due to a combination of factors, including a drop in the U.S. dollar exchange rate in the local market and a decrease in global gold prices, driven by reduced demand.

He added that the strength of the U.S. dollar, supported by recent economic data, has limited gold’s price growth in global markets. However, market optimism remains high, with many believing that gold prices will continue to rise, particularly if the Federal Reserve begins lowering interest rates.