Egypt's Gold Price Plummets by EGP 300 Amid Higher Interest Rate Bets

The price of gold in Egypt fell sharply over the past week due to comments from US Federal Reserve Chairman Kevin Warsh, which led to increased bets on higher interest rates. The international ounce price declined by 3.2% during the week ending Friday.

According to Marsad Al Dahab, 21-karat gold prices in Egypt fell by about EGP 300 per gram, from EGP 6,600 to EGP 6,300. The international ounce lost around $148 over the same period, dropping from $4,603 to $4,455.

The decline was largely driven by the stronger US dollar and rising US Treasury yields, as well as increased profit-taking after three consecutive weeks of gains. However, investment data suggests that investors have not abandoned gold, with gold and precious-metals funds attracting $4.21 billion during the week.