Gold in Egypt jumps EGP 200 despite global drop

2026-03-15 - 19:43

Gold prices in Egypt rose during the past week despite a decline in global markets, supported by currency pressures and local pricing dynamics, according to a report by iSagha. Local gold prices increased by around 2.8%, with the price of 21-karat gold — the main benchmark in the Egyptian market — climbing nearly EGP 200 to close at about EGP 7,425 per gram, compared with EGP 7,225 at the start of the week. In contrast, global gold prices fell by nearly 3%, with the ounce losing approximately $151 to settle near $5,021 by the end of trading. The decline was driven by a strengthening US dollar, rising US Treasury yields, escalating geopolitical tensions in the Middle East, and higher global oil prices. Saeed Embabi said the depreciation of the Egyptian pound against the dollar helped limit the impact of the global decline on local gold prices. He noted that gold pricing in Egypt is primarily influenced by three factors: international ounce prices, the US dollar exchange rate, and domestic supply and demand conditions. Prices of other gold categories also increased, with 24-karat gold reaching around EGP 8,486 per gram and 18-karat gold trading near EGP 6,364. The gold pound coin was priced at about EGP 59,400. Since the beginning of 2026, local gold prices have surged roughly EGP 1,600, supported by strong gains in global markets earlier this year. Globally, gold has risen nearly 16% year-to-date after recording a sharp rally of around 65% in 2025. However, gold demand in Egypt declined by about 10% in 2025 to approximately 45.1 tonnes, according to data from the World Gold Council, as high prices constrained consumer purchasing power. Global gold markets remained under pressure as oil prices climbed above $100 per barrel, fuelling inflation concerns and pushing bond yields higher. This environment reduced investor appetite for non-yielding assets such as gold, while strengthening demand for the US dollar as a safe-haven currency. Disruptions to shipping routes in the Strait of Hormuz also heightened energy supply concerns, contributing to volatility across financial markets and weighing on precious metals. Investors are focusing on a series of upcoming central bank meetings, particularly the policy decision of the U.S. Federal Reserve, as well as rate announcements from major global monetary authorities. Market participants will also monitor key US economic data releases, including inflation, employment, housing, and industrial production figures, for further signals on interest-rate trends and global economic growth prospects.