Market Expert: Egypt’s Gold Market Underwent a Sharp Adjustment Phase in Recent Weeks

Egypt’s gold market has experienced significant volatility in recent weeks, coinciding with strong movements in global prices, shifting consumer behavior, and mounting pressure between investment demand and jewelry sales, according to market expert Jack Raft.

Raft said the market witnessed an intense wave of demand for gold bars and coins, driven by record highs in global ounce prices and growing economic uncertainty, prompting many consumers to turn to gold as a safe-haven asset. He noted that this shift in demand patterns directly affected jewelry sales, which saw a noticeable slowdown compared to previous periods.

He explained that the rapid price increases created a wait-and-see approach among some buyers, who postponed purchasing decisions in anticipation of price stabilization, while others moved to sell and lock in profits following the sharp rallies. He stated that this divergence between buying and selling behavior contributed to heightened daily volatility in the local market.

Raft also confirmed that the market faced temporary challenges related to the availability of certain bar weights during peak demand periods due to sudden buying pressure. However, he pointed out that companies and manufacturers gradually increased supply to absorb demand and restore balance.

He indicated that the local market’s close linkage to global prices and the U.S. dollar exchange rate has made domestic pricing highly sensitive to external developments, including Federal Reserve decisions and key U.S. economic data influencing the dollar and Treasury yields. Any sharp movement in the ounce price, he said, is almost immediately reflected in Egypt’s gold prices.

Regarding the outlook, Raft stated that the market is entering a relatively calmer phase following the recent sharp rallies, expecting a cautious balance between supply and demand to persist. He added that gold will likely remain in strong investment focus as long as global economic uncertainty continues.

He concluded by emphasizing that Egypt’s gold market has demonstrated resilience in absorbing shocks, noting that while recent fluctuations were intense, they reflect the dynamics of an open market that reacts quickly to global changes before gradually returning to stability once speculative waves subside.