Gold Prices in Egypt Hold Above EGP 6,300 as Dollar Gains Support Local Market

Gold prices in Egypt held at elevated levels today after rising last week and breaking above the EGP 6,300-per-gram mark. The precious metal remained above this level, approaching the next resistance level at EGP 6,400 per gram.

Gold Prices in Egypt Today

- 24-karat gold: EGP 7,291 per gram

- 21-karat gold: EGP 6,380 per gram

- 18-karat gold: EGP 5,469 per gram

- Gold pound: EGP 51,040

Since the beginning of September, gold prices have increased by around EGP 80, representing a 1.3% gain. Gold is continuing to rise for the third consecutive month.

The main factors behind the increase in local gold prices last week were the shift in global gold market momentum and the metal’s renewed upward trend following the US Federal Reserve meeting. The move contributed to higher gold pricing in the Egyptian market.

Meanwhile, the US dollar exchange rate rose by 1.8% last week, gaining less than EGP 1 and ending the week at around EGP 52.20. The increase supported local gold prices, as the dollar exchange rate is a key component in determining gold prices in Egypt.

The rise in the dollar was driven by a sharp increase in yields on US government bonds, which reached record levels and attracted investments away from emerging markets. This resulted in hot-money outflows from Egypt’s debt markets totaling around $557.5 million on Wednesday and Thursday, contributing to increased demand for the US dollar.