Gold prices in the Egyptian market fell sharply on Saturday as global rates retreated from record highs following the nomination of Kevin Warsh as the next US Federal Reserve Chair.
The price of 21-carat gold, the local benchmark, dropped by approximately EGP 80 on Friday to reach EGP 6,670 per gram. This followed a volatile week where local prices opened at EGP 7,350 and closed at EGP 6,750, representing a weekly loss of roughly EGP 600 per gram, according to data from iSagha, a platform specialising in gold and jewellery.
The downturn in Egypt mirrored a significant correction in international markets, where the gold ounce fell approximately $93 on Friday to close at $4,895. Earlier in the week, global gold had hit an all-time high of $5,602 per ounce. Despite the late-month sell-off, global gold recorded monthly gains of 13.4% for January.
Saeed Embaby, Chief Executive of iSagha, reported that the 24-carat gram reached EGP 7,623, while 18-carat gold stood at EGP 5,717 and the gold pound was priced near EGP 53,360.
Embaby noted that local gold had previously been priced between EGP 300 and EGP 500 above global rates. While the market was permitted time to adjust, rapid global fluctuations and high demand complicated immediate price alignment. He stated that local prices must now match global levels, noting the current gap stands at approximately EGP 230. Embaby added that any persistent, unjustified gaps would be publicly clarified.
The global sell-off on Friday, which saw gold drop over 10% and silver fall about 30% after exceptional January gains, was driven by the strengthening of the US dollar and Treasury yields following Warsh’s nomination. The US dollar index rose 0.74% to 96.87, while the 10-year Treasury yield climbed to 4.247%.
High consecutive price increases had previously sparked unprecedented demand in Egypt, particularly for bullion and gold pounds, which exceeded local production capacities. Delivery schedules for some manufacturers have subsequently extended from two days to up to three weeks.
Despite the fluctuations, trading in Egypt continued. While some traders paused operations for speculative reasons, others maintained buying and selling activities based on available stock. Embaby advised investors who purchased at higher levels to hold their assets, suggesting the current drop does not signal the end of an upward trend and noting positive forecasts through the end of the year.
Analysts indicated that fundamental support for gold remains firm due to rising global debt, weak confidence in the dollar, and ongoing geopolitical risks. Precious metals are expected to maintain an upward trend into 2026, with price dips viewed as potential buying opportunities.
Market participants are now awaiting key U.S. economic data, including ISM PMI, ADP payrolls, and Nonfarm Payrolls, alongside policy updates from the Bank of England and the European Central Bank, to determine near-term price direction.
