Egypt Sees Spike in Gold Prices Amid Currency Pressure and Global Market Trends

Gold prices in Egypt rose notably on Thursday, driven by a combination of local currency volatility and shifting global market dynamics, according to traders and market analysts.

Retail gold outlets across the country reported price increases across all standard calibers, with 21-karat gold — the most commonly traded in Egypt — seeing a sharp uptick in value. The rise comes amid ongoing pressure on the Egyptian pound and heightened demand from investors seeking a safe haven amid global economic uncertainty.

Market Reactions and Investor Sentiment

The price of 21-karat gold reached approximately EGP 3,150 per gram by mid-day trading, up from EGP 3,080 earlier in the week. Prices for 18-karat and 24-karat gold also followed suit.

Local jewelers noted a surge in foot traffic as both individual buyers and small-scale investors moved to secure gold in anticipation of further price hikes.

“Gold has become a preferred hedge for Egyptians looking to protect their savings,” said Amr Soliman, a gold trader in Cairo’s bustling Khan El-Khalili market. “Especially with the pound under renewed pressure, people are turning to tangible assets.”

Global Factors at Play

Internationally, gold prices have also been trending upward, bolstered by lingering geopolitical tensions, rising interest in safe-haven assets, and expectations of looser monetary policy from central banks. The spot price of gold hovered around $2,420 per ounce on Thursday, nearing record highs.

Egypt’s gold market is particularly sensitive to global pricing due to its heavy reliance on imports and the fluctuation of foreign exchange rates. The Central Bank of Egypt’s recent policy decisions — including efforts to curb inflation and support foreign reserves — have yet to stabilise the local currency fully.

Outlook Uncertain

Analysts caution that gold prices in Egypt could remain volatile in the near term, influenced by both domestic monetary policy and developments on the international stage.

“Unless there’s significant relief for the Egyptian pound or a cooling of global demand, we’re likely to see continued upward pressure on local gold prices,” said economist Rania El-Masry.

For now, Egypt’s consumers and investors appear to be closely watching both the markets — and their wallets.

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