Gold prices in Egypt posted a sharp increase over the past week, supported by rising global prices and continued fluctuations in the exchange rate of the U.S. dollar against the Egyptian pound.
The price of 21-karat gold, the most actively traded in the local market, rose by 4.74% to EGP 7,175 per gram by the end of the week.
According to Ehab Wassef, head of the Gold and Precious Metals Division at the Federation of Egyptian Industries, the domestic market was directly influenced by the global uptrend in gold prices, alongside exchange rate volatility.
He noted that 21-karat gold touched a weekly high of EGP 7,300 per gram before easing to close at EGP 7,175, compared to an opening level of EGP 6,850, highlighting pronounced intra-week fluctuations.
Wassef added that local gold pricing remains closely correlated with international markets, particularly amid ongoing geopolitical tensions that have heightened uncertainty and fuelled volatility.
Exchange rate movements also played a significant role, with the U.S. dollar fluctuating around EGP 55 before dipping below EGP 54 during the week–changes that were immediately reflected in domestic gold prices.
On monetary policy, Wassef said the decision by the Central Bank of Egypt to hold interest rates steady aligned with market expectations, given persistent global inflationary pressures and the cautious stance adopted by central banks amid heightened regional tensions.
Globally, he noted that markets continue to react to statements by U.S. President Donald Trump, as well as recent U.S. labour market data, both of which have shaped investor expectations regarding the future trajectory of interest rates.
Internationally, gold briefly attempted to break above the $4,750-per-ounce level but failed to sustain momentum, prompting a modest pullback toward the end of the week.
In the local market, Wassef said 21-karat gold struggled to maintain levels above EGP 7,200 per gram, as selling pressure gradually increased, reflecting a cautious approach among traders.
He added that Egypt’s gold market is likely to remain closely tied to global developments and exchange rate movements, advising investors to monitor trends carefully and make informed decisions amid ongoing volatility.
