Egypt’s gold pound hovered near record highs on Thursday, underpinned by global bullion markets and rising demand for safe-haven assets amid political and economic uncertainty.
Local market sources reported the gold pound at 56,600 Egyptian pounds (EGP), while 21-carat gold traded at 7,075 EGP per gram. Analysts said the stability reflects a combination of international and domestic factors, including the U.S. Federal Reserve’s decision to hold interest rates steady and ongoing concerns about geopolitical tensions.
The Federal Reserve’s first policy meeting of 2026 concluded with rates maintained in the 3.5% to 3.75% range, in line with market expectations. The decision, which signaled a temporary pause in tightening monetary policy, contributed to a supportive backdrop for gold prices, traders said.
“Gold is benefiting from a confluence of factors: a Fed pause, continued central bank purchases, a softening U.S. dollar, and persistent risk sentiment globally,” said Ahmed Mostafa, a Cairo-based commodities analyst. “Investors are treating bullion as a safe haven in uncertain times, and this is reflected in the local market.”
Internationally, gold has been on a sustained rally, trading near $5,600 an ounce as central banks continued to bolster reserves and the dollar weakened against major currencies, according to Reuters data. Analysts noted that geopolitical frictions, global debt concerns, and inflationary pressures in major economies are driving demand for tangible assets like gold.
Egyptian consumers and investors, who traditionally favor gold as a store of value and a hedge against currency fluctuations, have been increasingly active in both retail and wholesale markets. Jewellery purchases, as well as investment bars, contributed to steady domestic demand despite elevated prices.
Local gold market dynamics also reflect the enduring preference for the “gold pound” – a one-gram, 24-carat coin widely used in Egypt for savings and investment. Market participants pointed out that the coin’s value tends to track international spot prices while adjusting for local premiums, which remain significant amid supply and demand considerations.
“The gold pound serves as both a safe asset and a traditional form of savings,” said Samir El-Din, a Cairo-based dealer. “Investors are buying amid uncertainty, not only to hedge against global risks but also against local currency volatility.”
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The recent price surge has also drawn attention from financial planners and retailers, with some jewellery shops reporting higher inquiries and purchases as Egyptians seek to diversify their savings. Analysts expect elevated gold prices to persist in the near term, barring major policy shifts or stabilization in geopolitical risk.
Globally, gold continues to benefit from central bank activity, particularly from emerging markets and economies seeking to diversify reserves. Analysts noted that purchases by central banks, including in Asia and the Middle East, have added upward pressure on bullion, even as physical demand from investors remains robust.
“Gold is a proven safe haven in turbulent times,” said Mostafa. “With global uncertainties, and the Fed signaling a pause rather than a cut, investors are maintaining exposure, which keeps local and international prices elevated.”
Economists and commodity strategists also highlighted that currency fluctuations play a key role in the Egyptian market. The Egyptian pound’s relative stability, combined with rising global bullion prices, keeps local gold valuations near record levels.
With the Fed expected to continue monitoring inflation and global financial conditions, analysts said that further movements in gold prices will largely depend on international macroeconomic trends and investor sentiment toward risk assets.
