Gold prices in Egypt's local market posted modest gains during last week's trading, with the 21-karat gram closing at EGP 6,925, even as global prices declined sharply due to US dollar strength and escalating geopolitical tensions.
Saeed Imbabi, Executive Director of the iSagha platform, said local gold prices rose by approximately EGP 10. The 21-karat gram opened at EGP 6,915, fell to a weekly low of EGP 6,730, and closed at EGP 6,925. Meanwhile, 24-karat gold stood around EGP 7,914, 18-karat at EGP 5,936, and the gold pound reached about EGP 55,400.
Globally, the gold ounce opened at $4,497, dropped to a four-month low of $4,098 early in the week, and recovered to close at $4,494 on Friday, trading in a range between $4,100 and $4,600.
Imbabi noted that local prices trade at a premium of about EGP 292 above global levels using the Central Bank of Egypt's exchange rate, reflecting weak domestic demand. A stronger US dollar (index at 100.17), rising oil prices (Brent above $110 per barrel), and elevated 10-year US Treasury yields at 4.438% pressured gold.
Anna Paulson, President of the Federal Reserve Bank of Philadelphia, warned of rising fuel and fertiliser costs and their inflationary impact. Thomas Barkin, President of the Federal Reserve Bank of Richmond, described the oil shock as adding a layer of 'fog' to the policy outlook, favouring a wait-and-see approach on interest rates.