Gold Price in Egypt Continues to Record Losses

Gold Price in Egypt Continues to Record Losses

Gold in Egypt continues to lose ground, with the ounce declining on the global stock exchange.

Gold prices in Egyptian markets fell by 0.4% during trading last week, while the price of an ounce on the global stock exchange fell by 0.4%. This followed strong US economic data, along with tangible progress in trade negotiations between Washington and its partners, which led to a decline in demand for the precious metal as a safe haven.

According to a report by iSaagha, a platform specializing in online gold and jewelry trading, the price of 21-karat gold fell by 20 Egyptian pounds during the week, falling from 4,650 Egyptian pounds to 4,630 Egyptian pounds. This coincided with a limited decline in the price of an ounce globally, falling by 0.4% from 3,350 to 3,337 dollars.

Saeed Imbaby, CEO of the iSaaga platform, said that 24-karat gold reached EGP 5,291 per gram, 18-karat gold reached EGP 3,969 per gram, while 14-karat gold reached EGP 3,087 per gram, and the gold pound reached EGP 37,040 per gram. Gold prices fell EGP 5 during trading on Saturday, with the price of 21-karat gold opening at EGP 4,635 per gram and closing at EGP 4,630 per gram, coinciding with the global stock market's weekly holiday.

Imbaby explained that the strength of the dollar and its regaining some momentum despite the decline in US Treasury yields, in addition to the optimism surrounding the trading markets, limited gold's benefit from the decline in yields. Conversely, markets expect the Federal Reserve to maintain interest rates in the 4.25%-4.5% range for the fifth consecutive meeting, supported by data reflecting the strength of the labor market.

He pointed out that trade indicators have witnessed positive developments, most notably the announcement of an agreement between Washington and Tokyo, and rising expectations regarding a potential trade deal with the European Union before early August. This was reinforced by US President Donald Trump's statement about the possibility of reaching an agreement with Europe, anticipating the imposition of tariffs between 10% and 15%.