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 The "Gold Observatory for Economic Studies" reported a 4% decline in local gold prices over the past week, mirroring a 1.5% drop in global ounce prices. The downward trend is largely driven by persistent pressures from a strong US dollar and rising US Treasury yields.

Dr. Walid Farouk, Director of the Gold Observatory, detailed that local gold prices shed approximately EGP 260 last week. The benchmark 21-karat gold opened at EGP 6,280, peaked briefly at EGP 6,330, and dipped to EGP 5,970 before settling at EGP 6,020 per gram at the close of trading. Meanwhile, 24-karat gold recorded EGP 6,880, 18-karat reached EGP 5,160, and the gold coin was priced at EGP 48,160.

"Since the beginning of June, local gold prices have lost about EGP 745, equivalent to an 11% drop. Year-to-date gains have now shrunk to a mere EGP 190 per gram, representing a modest 3.3% increase compared to the year's opening price of EGP 5,830," Dr. Farouk explained.

Consumer Behavior and Currency Impact: The recent price drops sparked a noticeable surge in local demand for gold bullion and coins. Small ingots—specifically 1, 2.5, and 5 grams—experienced the highest demand, prompting some companies to implement pre-booking systems with delivery windows of 4 to 7 days. However, purchasing momentum slowed during the final two days of the week as consumers opted to wait, anticipating further price drops.

This local market activity coincides with the Egyptian Pound's continued appreciation against the dollar. According to Central Bank of Egypt data, the average exchange rate improved from EGP 50.4637 on June 15 to EGP 49.9860 by the end of the week.