Egypt's gold market witnessed a decline in prices on Monday, October 12, 2026, with the price of 21-carat gold dropping to 6175 pounds from 6185 pounds, a decrease of 10 pounds or 0.16%. The price of 24-carat gold stood at 7057 pounds, while 18-carat gold was at 5293 pounds. The gold pound was traded at 49400 pounds. Meanwhile, the global ounce rate was at 4179 dollars, according to data from the online gold and jewelry trading platform, Aysagha.
The decline in Egypt's gold prices occurred amidst complex factors influencing the global precious metal prices, including geopolitical risks related to US-Iranian tensions, dollar fluctuations, and US bond yields. Investors are also awaiting inflation data that may reshape market expectations regarding the future trajectory of interest rates. Globally, ounce rates were traded above 4200 dollars at some point, supported by the decline in the dollar, oil prices, and yields.
Saced Imbabi, Executive Director of Aysagha, stated that gold is entering a crucial week with markets anticipating several US economic data releases, primarily the Consumer Price Index (CPI) scheduled for Wednesday, followed by the Producer Price Index and retail sales data on Thursday. He noted that the current market situation is characterized by intertwined geopolitical risks and monetary policy pressures.
Imbabi further explained that interpreting gold price movements based solely on one factor is insufficient. He pointed out that while tensions may support safe-haven demand, a strong dollar and high bond yields could limit this support. The Egyptian market's reading requires consideration of the exchange rate and local pricing mechanisms, in addition to global ounce movements.
The dollar's price in Egypt's banking sector stood at 52.53 pounds for buying and 52.63 pounds for selling. The dollar's rate in the gold market was around 52.54 pounds. The exchange rate is a key determinant of gold pricing in Egypt, as a higher dollar-to-pound rate, with other factors remaining constant, leads to an increase in the local value of the global ounce.
To understand the impact of the exchange rate on gold prices, a comparison of the dollar rate, ounce rate, and local gold price at the same time is necessary. This is because different timing of price observations and closing prices can affect the analysis. These factors highlight the importance of distinguishing between the impact of global gold price movements and exchange rate fluctuations on local gold prices.
A calculation of the theoretical price of 21-carat gold using an ounce rate of 4188.13 dollars and an exchange rate of 52.54 pounds yields a price of approximately 6190 pounds per gram, before adding manufacturing costs and taxes. Compared to the closing price of 6175 pounds, the local price is about 15 pounds lower than the calculated theoretical value.
Key points
- Egypt's gold prices decline despite global ounce rate increase amid economic data anticipation and geopolitical tensions.
- Local gold prices are influenced by a combination of global and domestic factors, including exchange rates and monetary policy pressures.
- The Egyptian gold market is expected to be impacted by upcoming US economic data releases and their potential implications for interest rates.
