Egypt's gold market has seen significant growth, with the price of 21-carat gold rising to 6380 EGP per gram by the end of the week, up from 5830 EGP at the start of the year. This represents a 9.4% increase, according to the "Gold Observatory for Economic Studies". The price increase is attributed to various factors, including the rise in global gold prices and the depreciation of the Egyptian pound.
The price of 21-carat gold increased by 115 EGP during the week, rising from 6265 EGP to 6380 EGP, a 1.8% increase. The price of 24-carat gold reached 7290 EGP per gram, while 18-carat gold was priced at 5470 EGP per gram. The gold pound, which weighs 8 grams of 21-carat gold, was priced at 51040 EGP.
Globally, gold prices rose by 29 USD per ounce, a 0.7% increase, during the week. The price of gold per ounce reached 4378 USD, despite the rise in US Treasury bond yields and investor caution regarding interest rates. The Egyptian market, however, has been supported by the rise in the US dollar, which has helped to increase gold prices.
The rise in the US dollar has contributed to the increase in gold prices in Egypt, with the dollar price rising from 51.41 EGP to 52.28 EGP during the week, a 1.7% increase. This has helped the local market to achieve greater gains than the global market. However, the price discount on 21-carat gold has widened due to increased supply and weak demand.
The gold market in Egypt is experiencing a shortage of liquidity, with many citizens selling their gold jewelry and coins to meet their financial needs. This has led to a surplus of gold in the market, causing prices to drop. The "Gold Observatory" has reported that the price discount on gold in Egypt is currently around 60 EGP per gram, reflecting the imbalance between supply and demand.
The Egyptian government has taken steps to regulate the gold market, with the "General Authority for Financial Supervision" banning consumer finance companies from providing loans to purchase gold and silver. This move aims to reduce the use of installment plans in borrowing and curb speculation. The decision is expected to impact demand for gold financed through consumer finance companies.
The global gold market has also been affected by various factors, including the US Federal Reserve's decision to raise interest rates. Despite this, gold prices have remained resilient, supported by ongoing geopolitical tensions and a slowdown in the rise of oil prices. The Indian gold market has also shown signs of resilience, with demand for physical gold remaining stable despite price fluctuations.
Key points
- Egypt's gold prices have risen by 9.4% since the start of the year, reaching 6380 EGP per gram of 21-carat gold.
- The price of gold in Egypt has been supported by the rise in the US dollar, which has helped to increase prices.
- The gold market in Egypt is experiencing a shortage of liquidity, leading to a surplus of gold and a price discount.
