Egyptian Gold Prices Surge as Local Market Outperforms Global Markets

The Egyptian gold market has outperformed global markets in recent weeks, driven by a combination of factors. The price of 21-karat gold in Egypt rose by EGP 180 during the week ending Friday, bringing its total increase since the start of July to EGP 315. This is significantly higher than the 0.9% gain recorded globally.

The local market's outperformance can be attributed to the appreciation of the official exchange rate of the U.S. dollar against the Egyptian pound and a widening local premium. The price of 21-karat gold opened at EGP 5,820 per gram, touched EGP 6,010 during trading, and closed near EGP 6,000.

The international gold market has been supported by geopolitical tensions, higher oil prices, and investor caution ahead of the upcoming U.S. Federal Reserve meeting. Despite this, global gold prices have only risen by US$36 per ounce since the beginning of July, while Egypt's domestic gold price increased by EGP 315.