Gold prices in Egypt saw a notable increase at the start of trading today, continuing the precious metal's upward trend which reflects volatility in global and local markets. This rise comes amidst anticipation from investors and consumers regarding market movements, particularly concerning the price of a gram of 21-karat gold, which is the main and most traded benchmark in the Egyptian market.
Historical background and importance of gold in Egypt
Gold holds a special place in Egyptian culture. It is not merely a commodity or investment tool, but an integral part of the social and economic heritage. Historically, gold has served as a safe haven for value during times of economic and political crisis, with Egyptians turning to it to protect their savings from inflation. It also plays a pivotal role in social customs, such as the "shabka" (bridal gift) presented at engagements and weddings, creating a continuous and seasonal demand for gold jewelry.
Local and global factors affecting prices
The movements of gold prices in Egypt cannot be understood in isolation from the factors affecting them, which are divided into two main parts:
- Global factors: The local price is directly affected by the price of an ounce of gold on global exchanges, which is priced in US dollars. Any changes in the monetary policy of the US Federal Reserve, fluctuations in the dollar exchange rate, or global geopolitical tensions are directly reflected in prices globally and subsequently locally.
- Local factors: The exchange rate of the Egyptian pound against the US dollar plays a crucial role in determining the final price of gold in Egypt. Additionally, supply and demand mechanisms within the local market, along with decisions by the Central Bank of Egypt regarding interest rates and inflation, influence consumer and investor behavior, driving them towards gold as a safe haven.
The impact of rising prices on the Egyptian market
The current surge in gold prices has multifaceted effects. For consumers, it increases the cost of marriage and places additional strain on families. For savers and investors, it may represent an opportunity for capital gains, but it also raises concerns about a potential price correction. Economically, these increases reflect a state of economic uncertainty and necessitate close monitoring of inflation indicators and the stability of the local currency.
Gold price list today in Egypt
Here are the details of the prices of different gold karats in the Egyptian markets today, Wednesday:
- The price of a gram of 24-karat gold: recorded 8040 Egyptian pounds for selling, and 7960 Egyptian pounds for buying.
- The price of a gram of 22-karat gold: recorded 7370 Egyptian pounds for selling, and 7295 Egyptian pounds for buying.
- The price of a gram of 21-karat gold: recorded 7035 Egyptian pounds for selling, and 6965 Egyptian pounds for buying.
- The price of a gram of 18-karat gold: recorded 6030 Egyptian pounds for selling, and 5970 Egyptian pounds for buying.
- The price of a gram of 14-karat gold: recorded 4690 Egyptian pounds for selling, and 4645 Egyptian pounds for buying.
- The price of a gram of 12-karat gold: recorded 4020 Egyptian pounds for selling, and 3980 Egyptian pounds for buying.
- The price of a gold pound: It recorded 56,280 pounds for selling and 55,720 pounds for buying.
