Gold prices in Egypt continued their downward trend throughout June, with 21-karat gold losing EGP 985 per gram since the beginning of the month, according to the latest weekly report by Marsad Al Dahab.
The report attributes the decline to weaker global gold prices, a stronger Egyptian pound, and a sharp contraction in the local market premium, allowing international price movements to pass through more efficiently to domestic prices.
The report showed that local gold prices fell by 4% during the past week, compared with a 1.6% decline in global gold prices, reflecting the increasing alignment between Egypt’s gold market and international pricing trends.
Walid Farouk, Director of Marsad Al Dahab for Economic Studies, said 21-karat gold declined by EGP 240 over the week, opening at EGP 6,020 per gram before falling to EGP 5,600—its lowest level since 4 December 2025—and closing the week at EGP 5,780 per gram.
On global markets, spot gold lost $67 during the week, declining from $4,155 per ounce to a low of $3,959 before settling at $4,088 per ounce.
By the end of the week, 24-karat gold stood at approximately EGP 6,606 per gram, while 18-karat gold reached EGP 4,954 per gram. The gold sovereign closed at EGP 46,240.
June correction wipes out most annual gains
Farouk noted that June has been one of the weakest months for gold this year. Since opening the month at EGP 6,765 per gram, 21-karat gold has declined by EGP 985. Despite the sharp monthly correction, prices remain only EGP 50 below their opening level for 2026.
Internationally, gold has fallen by $452 per ounce since the beginning of June, erasing virtually all the gains recorded earlier this year. Bullion is now trading about $230 below its opening level for 2026.
Lower local premium brings Egypt’s gold prices closer to fair value
One of the report’s key findings was the significant decline in Egypt’s local gold premium—the gap between domestic market prices and their theoretical fair value based on global prices and the exchange rate.
According to Marsad Al Dahab, the premium narrowed from EGP 203 per gram at the beginning of the week to EGP 105 by the end of the week, its lowest level in several months.
Farouk explained that the decline reflects more efficient transmission of international price movements into the Egyptian market, supported by the appreciation of the Egyptian pound. However, the remaining premium suggests that investment demand for gold bars and coins remains resilient, as investors continue to use gold as a long-term hedge.
He also noted that 21-karat gold has retreated by nearly EGP 1,820 from its all-time high of approximately EGP 7,600 per gram recorded on 2 March.
Stronger Egyptian pound accelerates local price adjustment
The report highlighted the role of the stronger Egyptian pound in accelerating the correction in local gold prices.
According to Central Bank of Egypt data, the average exchange rate strengthened from EGP 49.98 to EGP 49.46 per U.S. dollar during the week, allowing a greater share of global price declines to be reflected in the domestic market while contributing to the sharp reduction in the local premium.
Global factors continue to pressure gold
Farouk said June’s sell-off was driven by continued strength in the U.S. dollar, rising U.S. Treasury yields, and market expectations that the Federal Reserve will maintain higher interest rates for longer.
Although recent U.S. inflation data broadly matched expectations, they reinforced the outlook for restrictive monetary policy, reducing gold’s appeal as a non-yielding asset. At the same time, easing geopolitical tensions weakened safe-haven demand, adding further pressure on bullion prices.
He added that the Egyptian market has become increasingly sensitive to these global developments as the local premium narrows and the exchange rate stabilises.
Farouk also noted that several international financial institutions, including ING, have revised down their gold price forecasts for the second half of 2026. Nevertheless, continued purchases by central banks are expected to provide support and limit further downside.
Marsad Al Dahab’s Gold Index (MGI), which evaluates the market based on global prices, exchange rates, local premiums, investor sentiment, and supply-demand dynamics, indicates that Egypt’s gold market is becoming increasingly aligned with international fundamentals.
