Chairperson of the Gold and Precious Metals Division at the Federation of Egyptian Industries, Ehab Wassef, highlighted sharp fluctuations in the local gold market throughout the past week.
He explained that although gold prices recorded notable gains in recent days, the metal gave up a significant portion of these increases during yesterday’s session, mirroring heightened volatility in global markets.
According to the Division’s weekly report, 21-karat gold, the most widely traded in Egypt, opened Saturday’s session at EGP 5,460 per gram before edging down to EGP 5,455, following a sharp EGP 105 drop on Friday.
Despite daily swings, the local market ended the week with a 2.3% gain, rising from EGP 5,345 per gram at the start of the week to EGP 5,465 at the close. Prices touched a weekly high of EGP 5,650 and a low of EGP 5,340.
Wassef noted that Friday’s steep decline was anticipated due to a marked drop in global gold prices. However, the overall performance for the week remained positive. He added that traders continue to exercise caution in light of recent record gains, and any upcoming corrections are likely to track global gold movements, especially with the US dollar exchange rate showing relative stability domestically.
On the global front, gold prices closed the week higher despite a sharp fall in the final session, triggered by broad selling across financial markets as expectations for near-term interest rate cuts faded. The ounce settled below $4,100, and Wassef warned that the selling pressure may persist in the coming days.
Locally, 21-karat gold slipped below the EGP 5,550 support level, ending the week under EGP 5,500 per gram, a development Wassef described as indicative of short-term bearish momentum.
Globally, the gold ounce registered a weekly gain of about 2.1%, rising from $4,005 at the start of the week to a high of $4,245, before closing at $4,085. Friday’s session alone witnessed a 2% drop after intraday losses exceeded 3%, signaling broad sell-offs across multiple asset classes, including traditional safe havens.
Wassef concluded that the Egyptian gold market is expected to continue tracking global trends, with the stable local exchange rate helping prevent exaggerated price movements in the near term.
