The Gold and Precious Metals Division of the Federation of Egyptian Industries announced that gold prices in the local market rose by 1.63 percent during last week’s trading.
21 karat gold, the most widely traded type in Egypt, reached its highest level in three weeks, bolstered by the rise of the dollar exchange rate against the Egyptian pound – even as global gold prices declined.
The head of the division, Ehab Wassef, said that gold prices in Egypt performed positively last week; the price of a gram of 21-karat gold climbed from LE 6,150 at the beginning of the week to LE 6,250 by the end, marking an increase of LE 100.
Wasef explained that the market benefited from the notable rise in the dollar exchange rate against the Egyptian pound, which helped support local gold prices and offset the impact of the decline in the price per ounce seen in global markets during the same period.
Improved local prices
He explained that gold in Egypt managed to end the week’s trading above the LE 6,200 per gram mark—having previously traded below that level—before breaking through it to reach LE 6,250, reflecting an improvement in the performance of local prices throughout the week.
Wassef added that global gold prices fell by 0.7 percent last week, closing at US$ 4,165 per ounce—down from an opening price of $ 4,189—which confirms that the movement of the dollar in Egypt had a greater impact than the fluctuations in the global price of gold.
The dollar exchange rate rose by 2.2 percent over the past week, an increase of 1.2 Egyptian pounds, reaching LE 53.65.
This marks its highest level since May, a development that has directly impacted the pricing of gold in Egypt.
A report from the Gold and Precious Metals Division noted that the dollar’s ascent occurred against the backdrop of rising crude oil prices, which are nearing $ 110 per barrel.
This coincides with ongoing geopolitical tensions that are threatening energy supplies, thereby increasing the national energy import bill and driving up demand for US currency.
Edited translation from Al-Masry Al-Youm