Gold prices in Egypt experienced a decline in the local market on September 28, 2026, due to a global drop in value. The price of an ounce of gold fell from $4286 to around $4150. As a result, the 21-carat gold rate, which is the most widely traded, ranged between 6110 and 6130 pounds per gram during morning transactions. This represents a decrease of 100-120 pounds compared to the previous day's closing rate of 6230 pounds.
According to Lutfy El-Menyb, Deputy Head of the General Jewelry and Gold Chamber at the General Federation of Egyptian Chambers of Commerce, the global drop in gold prices led to a decrease in the local market. He stated that the price of 21-carat gold fell to 6130 pounds per gram. El-Menyb noted that the current price of gold is at a crossroads, influenced by factors such as rising oil prices and US interest rates, which could lead to increased inflation and further interest rate hikes.
El-Menyb also mentioned that the ongoing conflict between Russia and Ukraine could lead to a significant surge in gold prices. He advised investors not to dispose of their gold holdings unless necessary and to consider buying gold at current levels if they have surplus funds. Meanwhile, Amr Said, an expert in the gold market, believes that the current price of gold is suitable for buying. He noted that September is a good time to purchase gold due to increased supply during the back-to-school season.
Said attributed the increased supply to the rising costs of household expenses and the tendency for people to sell their gold holdings. He predicted that the global price of gold could drop to $4085 per ounce but also has the potential to rise. Said recommended monitoring the market throughout September and taking advantage of any price drops during the month. Globally, gold prices fell by over 3% on September 28, 2026, reaching their lowest level in more than seven weeks.
The decline was attributed to rising oil prices, which fueled inflation concerns and increased the likelihood of interest rate hikes. According to Reuters, the spot gold price fell by 3.1% to $4155.67 per ounce, marking its lowest level since August 5. The gold futures contract for December delivery also dropped by 3.1% to $4188.10. The high oil prices and expectations of further US interest rate hikes are cited as the main factors contributing to the decline in gold prices.
These factors are expected to keep US real yields and the dollar high, increasing the opportunity cost of holding gold, which does not generate interest. This situation may lead to further short-term fluctuations in the price of gold. On September 28, 2026, the yield on 10-year US Treasury bonds, a benchmark for mortgage and car loan rates, rose by over three basis points to 5.219%.
The 30-year Treasury bond yield, which is more sensitive to geopolitical risks, increased by two basis points to 5.529%. The two-year Treasury bond yield rose by more than five basis points to 4.916%. One basis point is equivalent to 0.01%. Overall, the decline in gold prices in Egypt and globally is attributed to a combination of factors, including rising oil prices, interest rate expectations, and a strong US dollar.
Key points
- The 21-carat gold rate in Egypt now ranges between 6110-6130 pounds per gram.
- Global gold prices fell by over 3% on September 28, 2026, reaching their lowest level in more than seven weeks.
- Experts advise monitoring the market and considering buying gold at current levels, citing potential for price fluctuations.
