Gold prices in Egypt’s local market rose by around EGP 580, or 9.4%, during last week’s trading, driven by a sharp rally in global bullion prices that climbed $392, or 8.5%—the strongest weekly gain in nearly six years. The surge occurred amid rising demand, escalating geopolitical tensions, and heightened political uncertainty worldwide, according to a report by iSagha, the online gold and jewellery trading platform.
Gold prices in Egypt saw a notable surge last week, with the gram opening at EGP 6,155 and closing at EGP 6,735, according to Saeed Embabi, CEO of iSagha. Twenty-four carat gold reached EGP 7,697 per gram, eighteen carat hit EGP 5,773 per gram, and the gold pound climbed to around EGP 53,880.
Since the start of the year, prices have risen by EGP 905, a 15.5% increase, aligning with global gains exceeding $670. Embabi attributed the local rise mainly to the global price surge, relative stability in the US dollar exchange rate, and stronger domestic demand, widening the gap between local and global prices to EGP 146.
The local market faces a severe shortage of gold and silver bullion due to heightened demand and the ongoing suspension of imports for companies, making it reliant on resale operations increasingly directed toward exports, which has led to a decline in domestic supply. Manufacturers have turned to traders' stocks, extending delivery times to as long as two weeks.
Embabi advised consumers to view gold jewellery not just for adornment but as a savings tool, emphasizing the choice of pieces with reasonable workmanship costs that could be offset by potential future price gains.
Globally, investors sought safe-haven assets amid persistent geopolitical and economic uncertainty, as well as US dollar weakness, influenced by US President Donald Trump’s trade policies, particularly tariffs as a pressure tool. Tensions eased somewhat midweek after Trump announced a step back from tariff threats on European countries following an outline framework agreement on Greenland, though the lack of binding details limited its impact on gold prices.
Markets expect interest rates to remain unchanged at the US Federal Reserve’s January 27–28 meeting, with anticipation around Trump’s selection of the next Fed Chair by month-end. The University of Michigan’s January survey showed improved consumer sentiment, with declining inflation expectations.
The precious metals sector maintains strong momentum, with silver surpassing $100 per ounce and gold nearing $5,000, as Bank of America raised its short-term target to $6,000.