Gold prices in Egyptian markets witnessed dramatic shifts last week, with the precious metal recording a notable 5% increase, driven by a strong upward trend in the price per ounce on global exchanges. This record rise coincided with increased global demand for safe-haven assets, a decline in the dollar index, and the usual decrease in liquidity as the financial year draws to a close.
Price details in the local market
In a press statement, Saeed Embaby, CEO of a gold and jewelry trading platform in Egypt, explained that the local market responded immediately to global changes, with prices jumping by approximately 285 Egyptian pounds in just one week. The price of a gram of 21-karat gold, the most popular and widely traded among Egyptians, opened at 5,790 Egyptian pounds, continuing its strong upward trend and closing at an unprecedented level of 6,075 Egyptian pounds.
The price increase wasn't limited to 21-karat gold; it encompassed all gold purities. A gram of 24-karat gold reached approximately 6,943 Egyptian pounds, nearing the 7,000-pound mark, while a gram of 18-karat gold reached 5,207 pounds. The price of a gold sovereign also saw a significant rise, reaching 48,600 pounds, reflecting the high investment demand for gold bars and coins.
Global performance and economic context
Globally, the price of gold surged by $194 per ounce, opening at $4,339 and closing at $4,533, after reaching a record high of $4,555. This meteoric rise is attributed to several economic and geopolitical factors, most notably the trend among global central banks to lower interest rates. This reduces the opportunity cost of holding gold, which does not generate returns, making it more attractive compared to bonds and bank deposits.
Best annual performance in decades
Data indicates that gold is experiencing a golden age, with prices in the Egyptian market having gained approximately 2,335 Egyptian pounds since the beginning of 2025, representing a growth rate of nearly 63%. Globally, the price of an ounce of gold has risen by about $1,909, an increase of 73%. According to analysts, this performance is the best for the precious metal since 1979, recalling periods of historical high inflation that drove investors to seek refuge in real assets.
The role of central banks in supporting prices
It is worth noting that one of the main drivers of this continued rise is the strategic shift in central bank policies worldwide, particularly in emerging economies, which have intensified their gold purchases to bolster their foreign exchange reserves. This trend is part of a broader strategy to reduce reliance on the US dollar as the sole reserve currency and to hedge against currency market volatility and global inflation rates, which remain a major concern for monetary policymakers.
