Egyptian Gold Prices Plummet Amid Interest Rate Hike Expectations

The price of gold in Egypt fell by 4.5% during the week ending Saturday, mirroring a 3.2% decline in international prices.

This decline was triggered by remarks from US Federal Reserve Chairman Kevin Warsh, which prompted markets to increase their bets on higher interest rates.

The price of 21-karat gold fell by about EGP 300 per gram, opening the week at EGP 6,600 and closing at EGP 6,300. The international ounce lost approximately $148 over the same period, falling from $4,603 to $4,455.

The local premium disappeared by the end of trading, with no more than a marginal discount of EGP 2 per gram on 21-karat gold. This was due to continued resale activity by consumers, ample market supply, and weak local demand.