Egyptian Gold Prices Plunge Amid Stronger Dollar and Fed Hints at Further Rate Increases

Gold prices declined sharply in Egypt and on global exchanges on Wednesday as a stronger US dollar and comments from Federal Reserve officials boosted expectations of further interest rate increases. According to Marsad Al Dahab, gold prices in Egypt fell by around EGP 70 from Tuesday's close, bringing 21-karat gold to EGP 6,230 per gram.

The Egyptian gold pound was priced at EGP 49,840, while globally, gold fell by about $60 to $4,305 per ounce. Dr. Waleed Farouk, Director of Marsad Al Dahab for Economic Studies, noted that the decline in local gold prices coincided with a fall in the US dollar's exchange rate in Egypt.

The comments from Federal Reserve officials, including Richmond Federal Reserve President Tom Barkin and Boston Federal Reserve President Susan Collins, reinforced expectations of further interest rate increases. They cited growing concerns about inflation, which could remain above the central bank's target.