Egyptian Gold Prices Surge 5.4% Since August Amid Weaker Dollar

Gold prices have seen a significant surge in both Egypt and globally since August, driven by a weaker US dollar and diminishing expectations of a Federal Reserve interest-rate hike. In Egypt, the price of 21-karat gold has risen to EGP 6,260 per gram, while global gold climbed to around $4,376 per ounce.

The gap between the pace of gains in the Egyptian and global markets reflects several domestic factors, including the decline in the US dollar against the Egyptian pound and an increase in the volume of gold being resold into the local market. This has led to relatively weaker demand and increased resale activity, improving the availability of gold in the domestic market.

The recent rally has provided an opportunity for buyers who purchased gold at elevated levels earlier this year and had been waiting for prices to recover before selling. Marsad Al Dahab expects gold's near-term direction to remain shaped by two opposing forces: declining expectations of a rate hike and a weaker dollar, both supportive of the metal, against persistent inflation and energy risks.