Gold prices in both local and international markets witnessed a significant surge during Thursday's trading. According to a report by the Marsad Al Dahab for Economic Studies, this rise is driven by increased demand as investors flock to buy following the sharp declines experienced in previous days.
The Marsad Al Dahab noted that the price of 21-karat gold rose by approximately 100 EGP to reach 6,950 EGP, compared to yesterday’s closing. Internationally, gold jumped by about $72 to reach $4,619 per ounce at the time of reporting.
Current Market Prices:
24-Karat Gold: 7,943 EGP
18-Karat Gold: 5,957 EGP
Gold Pound: 55,600 EGP
This follows a downward trend on Wednesday, where local prices dropped by 40 EGP. The 21-karat gold opened at 6,890 EGP and closed at 6,850 EGP, while international prices fell from $4,596 to $4,547, marking a loss of $49.
Currency Impact and Geopolitics
The US Dollar continued its climb against the Egyptian Pound amid ongoing geopolitical tensions, which have triggered an exodus of "hot money" from emerging markets, including Egypt. In some banks, the exchange rate approached the 54 EGP mark.
The Marsad Al Dahab explained that the rising exchange rate has been a primary catalyst for the strong domestic gold price hikes. Local pricing is currently more sensitive to exchange rate fluctuations than international stock market movements, as it is tied to the global price of the ounce, the dollar exchange rate, and local supply and demand dynamics.
Global Market and the Federal Reserve
On the global stage, gold rebounded from its monthly low, crossing the $4,600 per ounce threshold, pausing a three-day losing streak. This occurred as the US Dollar entered a stabilization phase after reaching its highest level since April 13.
However, the US Federal Reserve's leaning towards a hawkish monetary policy, combined with the stalemate in US-Iranian relations, continues to favor the dollar and is expected to limit any sharp rallies for the yellow metal. As anticipated, the US central bank kept the benchmark interest rate unchanged between 3.50% and 3.75%.
Shifting Demand in the Egyptian Market
Data from the World Gold Council and surveys conducted by Marsad Al Dahab reveal a clear shift in the Egyptian market during Q1 2026. Demand has pivoted from jewelry to gold bars and coins as primary tools for saving and investment.
Total Egyptian purchases reached 10.9 tons in three months. Jewelry purchases fell by 19% annually to 5.2 tons, while purchases of gold bars and coins surged by 22% to 5.7 tons. Merchant surveys corroborate this, with 92.6% of customers opting for investment-grade gold (bars and coins), accounting for 88.9% of total sales. This reflects a clear reshaping of the Egyptian gold market, where gold is increasingly viewed as a hedge against economic pressures rather than just for adornment.
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