Gold prices in Egypt climbed over the past week despite a drop in global markets, driven by local currency pressures and domestic market dynamics, according to a report by iSagha.
The price of 21-karat gold the main benchmark in Egypt rose nearly 200 Egyptian pounds (EGP), or about 2.8 percent, reaching 7,425 EGP per gram from 7,225 EGP at the start of the week. Other categories also saw increases, with 24-karat gold trading at 8,486 EGP per gram, 18-karat gold at 6,364 EGP, and the gold pound coin priced at approximately 59,400 EGP.
By contrast, global gold prices fell almost 3 percent, with the ounce losing around US$151 to settle near $5,021. The decline was attributed to a stronger US dollar, rising US Treasury yields, escalating geopolitical tensions in the Middle East, and higher oil prices.
Saeed Embabi, a market analyst, noted that the depreciation of the Egyptian pound against the dollar helped insulate local gold prices from global declines. He said that Egypt’s gold pricing is primarily influenced by international ounce prices, the US dollar exchange rate, and domestic supply and demand conditions.
Since the start of 2026, local gold prices have surged about 1,600 EGP, following strong global gains earlier in the year. Globally, gold has risen nearly 16 percent year-to-date after a sharp rally of roughly 65 percent in 2025.
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Despite the price increases, demand for gold in Egypt fell by about 10 percent in 2025, totaling approximately 45.1 tonnes, according to the World Gold Council. High prices constrained consumer purchasing power, particularly for jewellery and investment coins.
International markets remain under pressure as oil prices climbed above $100 per barrel, fueling inflation concerns and pushing bond yields higher. These factors have reduced investor appetite for non-yielding assets such as gold, while supporting demand for the US dollar as a safe-haven currency.
Disruptions to shipping routes in the Strait of Hormuz also contributed to volatility in energy and financial markets, adding further uncertainty for precious metals.
Investors are closely watching upcoming central bank meetings, particularly policy decisions by the U.S. Federal Reserve, along with announcements from other major monetary authorities. Market participants will also track key US economic data, including inflation, employment, housing, and industrial production figures, for signals on interest-rate trends and the global economic outlook.
Analysts say the combination of domestic currency depreciation and sustained local demand for gold continues to support Egyptian prices, even amid a global pullback.
Gold is both a global store of value and a popular investment and jewellery commodity in Egypt. Local gold prices are influenced by three main factors: the international gold ounce price, the exchange rate of the Egyptian pound against the US dollar, and domestic supply and demand conditions. Egypt’s 21-karat gold is the standard benchmark for pricing in the local market, widely used in jewellery and investment coins.
The World Gold Council tracks gold demand worldwide and reported that Egypt’s consumption declined about 10 percent in 2025, reflecting high prices that constrained household and investor purchasing power. Despite this, gold remains a popular vehicle for savings and wealth preservation in the country.
Globally, gold prices are sensitive to macroeconomic trends, including US monetary policy, bond yields, inflation, and geopolitical tensions. A strong US dollar tends to weigh on gold, while market uncertainty, rising energy prices, and supply disruptions can push investors toward precious metals. In the Middle East, events such as disruptions in the Strait of Hormuz can affect global oil markets, indirectly influencing gold prices due to concerns over inflation and financial market volatility.
In Egypt, local factors such as currency depreciation and domestic demand for jewellery and investment coins often buffer the market from global fluctuations. Analysts closely monitor the interplay of international ounce prices, exchange rates, and domestic consumption to forecast trends in Egyptian gold pricing.
