Egyptian Gold Prices Soar as Dollar Strength Outpaces Global Gold Rise
Gold prices in Egypt's domestic market surged by 4.5% in July, significantly outperforming the global gold price rise of just 0.6%. The appreciation of the US dollar exchange rate against the Egyptian pound was a key factor driving this increase.
The price of 21-karat gold per gram rose from EGP 5,685 at the beginning of the month to EGP 5,940 by its end, an increase of approximately EGP 255. The global ounce price, meanwhile, increased by about $24 during July, rising from $4,017 at the beginning of the month to $4,041 at its end.
The US dollar exchange rate against the Egyptian pound experienced a significant upward shift in July, rising from around EGP 49.19 on July 1 to a high of EGP 51.42 on July 22 and 23, before ending the month at about EGP 51.22. This increase of approximately EGP 2.03 contributed to the domestic gold price rise.
Strong market activity in Egypt's domestic gold market also put pressure on the stamping system, with an official response from the Ministry of Supply and Internal Trade confirming a noticeable increase in the volume of gold jewelry items submitted for stamping during July.