Egypt gold jewellery demand rose 2% in 2Q 2024

Eid Al-Adha, a season full of marriages and vacations, may have increased the demand for gold.

This occurred after prices decreased when the currency situation improved following the IMF loan, according to the WGC report.

In March, Egypt signed an agreement with the IMF to extend its loan from $3 billion to $8 billion after the Central Bank of Egypt decided to float the currency, currently EGP 48.39 EGP/$1.

The report also mentions a recession in the volume of Egyptian gold purchases during 2Q of 2024 by 16 percent, reaching 14.4 tons of gold instead of 17.1 tons in 2Q of 2023.

However, gold prices have risen by 300 percent in 2Q of 2023. Thus, Prime Minister Mostafa Madbouly issued a decree in May 2023 exempting gold carried by travellers from customs duties and other fees except for the value-added tax (VAT) for six months, to combat the surge in prices and shortage in supply.

The WGC also noted that after the local currency stabilized, Egypt witnessed a 27 percent decline in gold investment as it recorded 7.6 tons in 2Q of 2024 compared to 10.4 tons in 2Q of 2023.

Nevertheless, bullions and gold coins decreased reaching 5.2 tons compared to 1Q of 2024, mainly because of the IMF loan which weakened people's motive to hedge gold against the currency.