Gold prices in Egypt witnessed a notable decline at the start of trading today, continuing the downward trend that began recently. This drop comes amidst ongoing volatility in global gold prices, coupled with the impact of several significant economic variables on the local market. The price of 21-karat gold, the most common and widely traded type in Egyptian markets, is a key indicator closely monitored by both consumers and investors, and it recorded a further decrease today.
The local economic context and its impact on prices
This decline in domestic prices is primarily due to a series of recent economic measures that have contributed to stabilizing the exchange market. Following the announcement of major investment deals, most notably the Ras El Hekma development project, and a significant influx of dollar liquidity into the state treasury, the Central Bank of Egypt was able to unify the exchange rate and largely eliminate the parallel dollar market. Gold pricing in Egypt has historically been linked to the parallel market dollar rate, but with the stabilization of the official exchange rate and the availability of foreign currency, the price of gold has begun to more realistically reflect the global price in Egyptian pounds, leading to a decline from its previous record highs.
Global factors controlling the price of gold
Globally, gold prices continue to be influenced by the monetary policies of major central banks, most notably the US Federal Reserve. Expectations of continued high interest rates strengthen the US dollar, making gold (priced in dollars) more expensive for holders of other currencies, thus putting downward pressure on its price. Conversely, any hints of interest rate cuts or escalating geopolitical tensions drive investors toward gold as a safe haven, driving up its value. Therefore, the final price in Egypt is a result of the interaction between the global price of an ounce of gold and the exchange rate of the Egyptian pound against the dollar.
The importance of the decline in gold prices for the Egyptian citizen
This decline presents a significant opportunity for those about to get married to purchase the "shabka," a traditional Egyptian wedding gift. It also encourages small savers and investors who view gold as a safe haven and a hedge against inflation to increase their purchases at more affordable prices. Conversely, those who bought gold at record highs during the peak of the price surge face a challenge, preferring to hold off selling to avoid losses. Overall, the stabilization of gold prices contributes to calming the markets and provides a positive indicator of an improving local economic climate.
Gold price list today in Egypt
The following is a breakdown of the prices of different gold karats in evening trading:
- The price of a gram of 24-karat gold: recorded 7910 Egyptian pounds for selling, and 7850 Egyptian pounds for buying.
- The price of a gram of 22-karat gold: recorded 7250 Egyptian pounds for selling, and 7195 Egyptian pounds for buying.
- The price of a gram of 21-karat gold: recorded 6920 Egyptian pounds for selling, and 6870 Egyptian pounds for buying.
- The price of a gram of 18-karat gold: recorded 5930 Egyptian pounds for selling, and 5890 Egyptian pounds for buying.
- The price of a gram of 14-karat gold: recorded 4615 Egyptian pounds for selling, and 4580 Egyptian pounds for buying.
- The price of a gold pound: It recorded 55,360 pounds for selling and 54,960 pounds for buying.
