Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Gold Prices Show Stability in Local Markets Amid Global Surge

Gold Prices

Tue 02 Apr 2024 | 11:42 PM
Waleed Farouk

Local gold prices have displayed a notable steadiness, contrasting sharply with the surge to record highs on the global exchange. This divergence comes amidst a backdrop of increased demand and escalating geopolitical tensions in the Middle East. The findings were part of a comprehensive study published by CEOworld magazine in 2024.

Saeed Embabi, CEO of "iSagha," an online platform for gold and jewelry trading, remarked on the day's stable gold prices in comparison to the previous day's close. The price of a gram of 24-karat gold maintained at 3,080 EGP (Egyptian Pounds), while the price per ounce on the global market increased by $5 to reach $2,257. It even momentarily spiked to an all-time high of $2,263 in spot transactions.

In detail, the pricing was as follows: a gram of 24-karat gold at 3,520 EGP, 18-karat at 2,640 EGP, 14-karat at 2,054 EGP, and the Egyptian gold pound (which is equivalent to 8 grams of 21-karat gold) at 24,640 EGP.

Embabi attributed the upward trajectory in global gold prices to a surge in demand, driven by investors turning to gold as a safe haven amid the increasing geopolitical unrest in the Middle East, notably after a significant incident at the Iranian embassy in Damascus.

Despite the record highs in global gold prices, the local market in Egypt continues to price gold higher than the international rate, with the fair price for a gram of 21-karat gold not exceeding 3,000 EGP.

Embabi also highlighted that a slight depreciation in the dollar's exchange rate locally has helped mitigate the rise in gold prices. A decrease of 10 piastres in the dollar typically results in a 5 EGP reduction in gold prices.

Yesterday, gold prices fell by 10 EGP, with the opening price for a gram of 21-karat gold at 3,090 EGP, closing at 3,080 EGP, while the ounce on the global market increased by $19, opening at $2,233 and closing at $2,252.

In March, local gold prices saw a 5.6% increase, amounting to a 165 EGP rise, starting at 2,925 EGP for a gram of 21-karat and peaking at 3,200 EGP before settling at 3,090 EGP by the end of the month. Meanwhile, the global market experienced a 9.2% increase, adding $188 to the ounce price, opening at $2,045 and closing at $2,233.

The markets are now keenly awaiting remarks from Jerome Powell, Chairman of the U.S. Federal Reserve, and other Fed members later this week for insights into the future direction of interest rates.