Egypt experienced significant movements in gold prices throughout September 2026. The metal faced pressure in global markets, which was reflected in local prices. The ounce of gold decreased globally, while the dollar strengthened against the Egyptian pound. As a result, gold prices in the local market declined by 3.5% during the month. In contrast, the global ounce of gold dropped by approximately 6.7%. These developments were influenced by changes in the dollar, US Treasury bond yields, and expectations of monetary policy.
According to Dr. Walid Farouk, director of the Gold Observatory for Economic Studies, the price of 21-carat gold per gram decreased by around 220 pounds during September. However, exchange rate movements helped mitigate the impact of the global decline on the local market. The difference in the rate of decline between Egypt's gold prices and global markets is primarily attributed to exchange rate movements and changes in the difference between the local price and the indicative value calculated based on the global ounce and dollar prices.
The dollar played a supporting role in Egypt's gold prices despite the global decline. At the beginning of September, the dollar traded at approximately 50.97 pounds, rising to 52.25 pounds on September 16. By the end of the month, it was around 52 pounds. This represents a 1.07-pound increase during September, equivalent to about 2%. This relative support for local gold prices limited the impact of the global decline in the ounce priced in dollars.
Despite the decline in gold prices during September, 21-carat gold maintained some of its gains since the beginning of the year. It increased by around 280 pounds, representing a 4.8% rise, after starting 2026 at 5,830 pounds and ending September at 6,110 pounds. This indicates that local market performance is not solely linked to the global ounce price but is also influenced by the dollar exchange rate and the difference between local and indicative values.
Globally, gold prices experienced a decline during the first nine months of 2026. The ounce of gold decreased by 163 dollars, representing a 3.8% drop, from 4,318 dollars at the beginning of the year to around 4,155 dollars by the end of September. The ounce reached its highest level at 5,626 dollars on January 29, before dropping to 3,959 dollars on June 24. By the end of September, the ounce was 1,471 dollars less than its peak in January, representing a 26.1% decrease.
The performance of gold in Egypt's market is influenced by factors beyond the global ounce price, including dollar exchange rate movements and the difference between local and indicative prices. Expectations of US monetary policy, along with economic data, played a significant role in shaping gold's movement during September. Strong employment data supported expectations that the US economy can withstand high interest rates, which in turn bolstered the dollar and US Treasury yields.
On September 16, the US Federal Reserve raised the interest rate range by a quarter of a percentage point to 3.75%–4%, indicating continued concerns about inflation, which is above the 2% target. This decision reflected in gold's movements during the month, as the metal, which does not generate returns for its holders, faced increased pressure. The combination of local and global factors contributed to the decline in gold prices in Egypt during September.
Key points
- Egypt's gold prices declined by 3.5% in September 2026.
- The global ounce of gold dropped by approximately 6.7% during the same period.
- The US Federal Reserve raised interest rates on September 16 to 3.75%–4%.
