Egyptian Gold Prices Surge to 3-Week High, Driven by Strong US Dollar

Gold prices in Egypt experienced a significant uptick, rising by 1.63 percent over the past week, according to the Gold and Precious Metals Division of the Federation of Egyptian Industries. The price of 21-karat gold, a popular choice in the Egyptian market, reached its highest point in three weeks. This surge was primarily fueled by an increase in the US dollar exchange rate against the Egyptian pound, even as global gold prices saw a decline.

Ehab Wassef, head of the division, reported that the price of a gram of 21-karat gold increased from LE 6,150 at the start of the week to LE 6,250 by its close, marking a LE 100 gain. Wassef attributed this positive performance to the strengthening dollar, which effectively supported local gold prices and counteracted the impact of falling international gold values.

The local gold market demonstrated resilience, with prices consistently trading above the LE 6,200 per gram mark before climbing to LE 6,250. This upward trend in local pricing occurred despite a 0.7 percent drop in global gold prices last week, which closed at US$ 4,165 per ounce, down from an opening of $ 4,189. Wassef emphasized that the dollar's movement within Egypt had a more substantial influence on local gold prices than global market fluctuations.

The US dollar exchange rate saw a 2.2 percent increase over the week, adding 1.2 Egyptian pounds to reach LE 53.65. This marks the highest level for the dollar since May and has directly influenced gold pricing within Egypt. The Gold and Precious Metals Division's report also noted that the dollar's rise occurred amidst increasing crude oil prices, which are approaching $110 per barrel. This situation is exacerbated by ongoing geopolitical tensions that threaten energy supplies, leading to higher national energy import costs and a greater demand for US currency.