The Gold and Precious Metals Division at the Federation of Egyptian Industries announced that gold prices in the local market recorded strong gains over the past week, supported by a historic surge in global gold prices and the relative stability of the US dollar exchange rate against the Egyptian pound.
Ehab Wassef, Head of the Gold and Precious Metals Division, stated that the price of 21-karat gold rose by 4.59%, equivalent to EGP 265 per gram. Trading opened at EGP 5,775 per gram at the beginning of the week and closed at EGP 6,040 per gram, with prices ranging between a weekly low of EGP 5,775 and a high of EGP 6,040.
Wassef explained that the sharp rise in local gold prices was primarily driven by the historic rally in global gold markets, which has become the dominant pricing factor in Egypt amid the stability of the dollar exchange rate in banks and the absence of significant currency fluctuations. As a result, local gold price movements have closely mirrored changes in global ounce prices.
He added that global gold prices continued to rise for the third consecutive week, supported by increased demand for safe-haven assets amid escalating geopolitical tensions and a weakening US dollar, factors that were directly reflected in the local market.
The global price of gold rose by 4.5% over the past week, reaching a new all-time high of $4,550 per ounce. Trading opened at $4,340 per ounce and closed at $4,533 per ounce.
Wassef noted that global gold prices successfully broke through the psychological level of $4,500 per ounce, supported by strong upward momentum despite being in overbought territory. He indicated that prices are currently targeting the resistance level of $4,550 per ounce.
On the domestic front, Wassef said that 21-karat gold prices have stabilised above the EGP 6,000 per gram level after breaking through it over the past two days, supported by sufficient buying momentum. He added that the market is now anticipating a potential test of the EGP 6,050 per gram level in the coming period.
Wassef confirmed that geopolitical tensions were the main driver of gold’s performance during the week, particularly amid escalating disputes between the United States and Venezuela and continued US pressure on Venezuelan oil exports. These developments heightened concerns over supply disruptions and regional instability, prompting investors to increase their demand for gold as a safe-haven asset.
