Egyptian Gold Prices Rise Amid Geopolitical Tensions
Gold prices in Egypt rose by EGP 110 to around EGP 6,390 per gram for 21-karat gold over the past week, according to data from iSagha. This increase reflects the strong influence of geopolitical risks on the gold market compared with traditional interest rates.
The price of 24-karat gold stood at approximately EGP 7,303 per gram, while 18-karat gold was priced around EGP 5,477. The global gold ounce reached $4,378 and the gold pound was valued at around EGP 51,120.
iSagha Executive Director Saeed Embaby noted that the movement of gold prices this week broke from one of the traditional relationships between interest rates and gold prices, with the price of 21-karat gold increasing by 1.75% despite a 25-basis-point US Federal Reserve interest rate hike.
Embaby stated that geopolitical tensions in the Gulf region and between the US and Iran supported demand for gold as a safe-haven asset, while lower oil prices eased inflation concerns and pushed bond yields lower.