Egyptian Gold Prices Rise as Interest Rates and Global Price Interact

The relationship between interest rates and gold prices in Egypt is more complex than initially assumed. According to an analysis by Marsad Al Dahab, periods have been observed where both interest rates and gold rose together since 2022.

As of January 2022, the overnight deposit rate stood at 8.25%, while 21-karat gold cost around EGP 800 per gram. By December 2023, the central bank had raised the deposit rate to 19.25%, while the price per gram reached approximately EGP 3,170 in early 2024.

The analysis suggests that interest rates can influence savers' willingness to buy gold, but other factors such as the global price per ounce and the US dollar's exchange rate against the Egyptian pound also determine its local price. The study found that the entire increase in Egyptian gold prices since 2022 cannot be attributed solely to higher interest rates.

In 2025, average inflation fell to 14.1%, from 28.3% in 2024, making saving in pounds more attractive in real terms than in previous years. However, this did not prevent gold prices from rising, as the global price per ounce also increased by 44% between 2024 and 2025.