Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Gold Prices Stabilize Locally Amid Global Market Decline

Gold Service

Tue 30 Apr 2024 | 11:00 PM
Waleed Farouk

During Tuesday's trading, the local gold markets witnessed stability, while global markets experienced a decline in gold prices driven by a strengthening U.S. dollar. This occurs as investors closely monitor the U.S. Federal Reserve's upcoming decision on interest rates, expected today and tomorrow.

Saeed Embabi, the Chief Executive Officer of "iSagha," an online platform for trading gold and jewelry, reported that the price of a 21-karat gold gram remained steady at EGP 3,090, unchanged from Monday's close. In contrast, the price of gold ounces on the global market fell by approximately $27, landing at $2,310.

Embabi provided further details on the local pricing: a 24-karat gold gram is currently selling for EGP 3,531, an 18-karat for EGP 2,649, and a 14-karat for about EGP 2,060. The price of a gold pound stands at EGP 24,720.

He observed an increase in Egyptian purchases of gold items, driven primarily by traditional uses such as weddings and ornamentation. Embabi pointed out that the demand for gold bars and pounds over the past two years was unusually high due to concerns about the ongoing devaluation of the currency and deteriorating economic conditions, prompting Egyptians to turn to gold as a safeguard for their assets.

According to a report released today by the World Gold Council, total Egyptian purchases of gold (including jewelry and bars) in the first quarter of 2024 fell by 17% to 13.2 tons, down from 15.8 tons in the same quarter last year. However, jewelry purchases saw a slight increase of 3%, totaling 8 tons compared to 7.7 tons last year. On the other hand, purchases of gold bars and pounds recorded a 36% decrease, from 8.1 tons in the previous year to just 5.2 tons.

The report also highlighted that the average price of gold has risen by 10% during the first quarter of the year, reaching around $2,070, compared to $1,972 in the same period the previous year.