Gold prices in Egypt witnessed a notable decline during trading on Thursday, continuing the fluctuating trend that has characterized the performance of the precious metal in local and global markets recently. This drop comes amidst anticipation from both consumers and investors regarding price movements, particularly the price of a gram of 21-karat gold, which is the most popular and widely traded type in the Egyptian market.
Gold prices in Egypt today in detail
Below is a list of the latest gold prices for different carats in the Egyptian market, keeping in mind that these prices do not include the manufacturing cost, which varies from one trader to another:
- The price of a gram of 24-karat gold: The selling price recorded 7730 Egyptian pounds, and the buying price 7650 Egyptian pounds.
- The price of a gram of 22-karat gold: The selling price recorded 7085 Egyptian pounds, and the buying price 7015 Egyptian pounds.
- The price of a gram of 21-karat gold: The selling price recorded 6765 Egyptian pounds, and the buying price 6695 Egyptian pounds.
- The price of a gram of 18-karat gold: The selling price was recorded at 5800 Egyptian pounds, and the buying price at 5740 Egyptian pounds.
- The price of a gram of 14-karat gold: The selling price was recorded at 4510 Egyptian pounds, and the buying price at 4465 Egyptian pounds.
- The price of a gram of 12-karat gold: The selling price was recorded at 3865 Egyptian pounds, and the buying price at 3825 Egyptian pounds.
- The price of the gold pound: The selling price recorded 54120 pounds, and the buying price 53560 pounds.
General context: Why do gold prices change?
Gold is a global commodity priced in US dollars on international exchanges, making its local price in Egypt directly linked to two main factors: the global price per ounce and the exchange rate of the dollar against the Egyptian pound in the local market. Historically, gold has been considered a “safe haven” for investors during times of economic crisis and geopolitical tension, as it retains its value better than currencies and other assets. Any changes in the monetary policy of major central banks, particularly the US Federal Reserve, directly affect gold's appeal. When interest rates rise, investors tend to favor assets that generate returns, such as bonds, thus reducing demand for gold, which does not offer a direct return.
The importance of the event and its expected impact
Domestically, the decline in gold prices has a dual impact. On the one hand, it presents an opportunity for consumers and those planning to marry to purchase gold jewelry and other gold items at a lower cost, potentially boosting sales in jewelry stores. On the other hand, savers and investors who view gold as a store of value and a hedge against inflation are watching this decline cautiously. Continued drops may prompt some to sell for fear of further losses, while others may see it as an opportunity to increase their holdings of the precious metal at lower prices. The stability of the gold market in Egypt is closely linked to the stability of the overall economic situation and the availability of foreign currency, making it a sensitive indicator reflecting market confidence in the local economy.
