Gold prices in Egypt witnessed a notable decline at the start of trading on Monday, continuing the volatility that has characterized the precious metal's performance recently. This drop is influenced by movements in global markets and the dollar exchange rate in the local market, leaving consumers and investors constantly awaiting future price trends.
Gold price list today in Egypt
The 21-karat gold is the most popular and traded in the Egyptian market, and it recorded a new decline today. Below is a breakdown of the prices of different karats in morning trading:
- The price of a gram of 24-karat gold: recorded 7685.75 Egyptian pounds for selling, and 7571.5 Egyptian pounds for buying.
- The price of a gram of 22-karat gold reached 7045.25 Egyptian pounds for selling and 6940.5 Egyptian pounds for buying.
- The price of a gram of 21-karat gold reached 6725 Egyptian pounds for selling and 6625 Egyptian pounds for buying.
- The price of a gram of 18-karat gold: recorded 5764.25 Egyptian pounds for selling, and 5678.5 Egyptian pounds for buying.
- The price of a gram of 14-karat gold reached 4483.25 Egyptian pounds for selling and 4416.75 Egyptian pounds for buying.
- The price of a gram of 12-karat gold has decreased to 3842.75 Egyptian pounds for selling and 3785.75 Egyptian pounds for buying.
- The price of a gold pound: It recorded 53,800 pounds for selling, and 53,000 pounds for buying.
General context: Why does the price of gold change in Egypt?
Historically, gold in Egypt has been considered a safe haven and a store of value, with Egyptians turning to it to preserve their savings against inflation and fluctuations in the Egyptian pound's exchange rate. However, its price is not determined in isolation from global and local factors. The local price of gold is directly linked to the price of an ounce on international exchanges, which is influenced by the monetary policy decisions of major central banks, most notably the US Federal Reserve. When interest rates rise, investors tend to reduce their demand for gold because it does not generate returns, and vice versa.
The importance of the event and its expected impact
Domestically, the exchange rate of the US dollar against the Egyptian pound is the second major driver of gold prices. Any change in the exchange rate is immediately reflected in gold prices in the Egyptian market. The current decline in gold prices may present a buying opportunity for those about to get married, as gold is an essential part of social traditions (the dowry), and it may also encourage smaller savers to convert a portion of their funds into the precious metal as a hedge. For investors, this volatility reflects global and local economic uncertainty, necessitating close monitoring of economic indicators before making major investment decisions. Price fluctuations are expected to continue in the short term, linked to any new global economic data or changes in local monetary policy.
