Egypt's gold market experienced a significant decline in prices over the past week, with a 100-pound drop per gram. This decrease was influenced by a decline in global gold prices, which fell by over $140 per ounce. The decline was attributed to a strong US dollar and rising US bond yields, as well as concerns over inflation and fluctuations in oil prices due to geopolitical tensions between the US and Iran.
The 21-karat gold, which is the most in-demand in Egypt and used for making gold coins, ended the week at 6,130 pounds per gram, excluding manufacturing costs. This represents a decline from the opening price of 6,230 pounds per gram at the start of the week. The 24-karat gold, used for making gold bars, ended the week at 7,006 pounds per gram, down from 7,120 pounds per gram at the start of the week, a loss of 120 pounds.
Globally, the price of gold fell to $4,140 per ounce at the end of the week, down from $4,286 per ounce at the start of the week. This decline was attributed to rising US bond yields and expectations of continued monetary tightening by the US Federal Reserve. Additionally, fluctuations in oil prices due to geopolitical tensions contributed to the decline in gold prices.
At the start of the week, the prices of gold in Egypt were as follows: 24-karat gold was priced at 7,120 pounds per gram, 21-karat gold at 6,230 pounds per gram, 18-karat gold at 5,340 pounds per gram, and 14-karat gold at 4,153 pounds per gram. The price of a gold pound was 49,840 pounds, and the global gold price was $4,286 per ounce.
By the end of the week, the prices of gold in Egypt had changed, with 24-karat gold priced at 7,006 pounds per gram, 21-karat gold at 6,130 pounds per gram, 18-karat gold at 5,254 pounds per gram, and 14-karat gold at 4,087 pounds per gram. The price of a gold pound was 49,040 pounds, and the global gold price was $4,140 per ounce.
The manufacturing cost of gold in Egypt ranges from 3% to 7% of the gram price, depending on the effort required to manufacture the gold item. This cost may vary depending on the type of gold and the workshop or company producing it. The 18-karat gold has a higher manufacturing cost compared to 24-karat gold, which is often used for making gold bars and has a lower manufacturing cost.
The decline in gold prices in Egypt is expected to impact the local market, with consumers potentially benefiting from lower prices. However, the impact on the broader economy and the gold industry remains to be seen. Key Points:
Key points
- Egypt's gold prices dropped by 100 pounds per gram in a week.
- The decline was influenced by a strong US dollar and rising US bond yields.
- The 21-karat gold ended the week at 6,130 pounds per gram, excluding manufacturing costs.
