In a remarkable market shift, gold prices in the local Egyptian markets have seen an unexpected surge, climbing to EGP 2,735 for 21-karat despite a downturn in global gold prices. This rise, observed in midday trades on Monday, contrasts with the global trend, following recent remarks from U.S. Federal Reserve members about ongoing interest rate hikes.
Said Embabi, Executive Director of the online gold and jewelry trading platform "iSagha," noted a significant increase of around EGP 15 in local gold prices during today's trading session. This surge contrasts with last week's closing figures, pushing the cost of 21-karat gold to a new high of EGP 2,735. Concurrently, the global market experienced a slight dip, with the price of an ounce of gold decreasing by approximately $4, now valued at $19.
Embabi further elaborated on the current gold rates, stating that 24-karat gold is priced at EGP 3,126 per gram, while 18-karat stands at EGP 2,344 per gram. The price for 14-karat gold is around EGP 1,824 per gram, and a gold pound (eight grams of 21-karat gold) is now valued at approximately EGP 21,880.
The local gold market experienced a considerable hike of EGP 120 (about 4.6%) during the previous week's trades. The week began with 21-karat gold priced at EGP 2,600 per gram, reaching highs of EGP 2,735, and eventually settling at EGP 2,720. In contrast, the global ounce price rose by $42 (2.2%) over the same period, starting at $1,939 and peaking at $1,985, before closing at $1,918.
Embabi highlighted that local gold pricing currently follows a unique mechanism, based less on the black market dollar exchange rates and more on official rates. Gold prices in Egypt are determined by three main factors: the global ounce price, the local dollar exchange rate, and market supply and demand dynamics.