Egypt Gold Prices Drop 1.7% Amid Stronger Dollar, Rising Yields

Gold prices in Egypt declined by around 1.7% over the week ended Saturday evening, while international gold prices fell approximately 3.4%. The price of 21-karat gold dropped EGP 105 per gram, opening at EGP 6,235 and closing at EGP 6,130.

Rising US Treasury yields, a stronger dollar, and energy-related inflation concerns weighed on the metal despite weaker-than-expected US economic data. Dr. Waleed Farouk, Director of Marsad Al Dahab for Economic Studies, said that domestic gold prices declined less sharply than international prices due to the strengthening US dollar.

The dollar's rise from EGP 51.91 to EGP 52.40 per dollar offset part of gold's losses when converted into local currency. Farouk explained that lower expectations of a rate hike alone cannot sustain a gold rally while yields remain elevated, as gold generates no regular income and bonds offer higher yields.