Gold Prices Surge by EGP 290 Since the Start of 2024

Gold prices in the local Egyptian markets have surged by 9% since the beginning of 2024, marking a significant increase as of the close of trading on Saturday. Gold prices have seen an even steeper rise on the global stage, with a 22% increase over the same period.

The price of gold in Egypt has increased by EGP 290 per gram since the start of the year. At the beginning of 2024, a gram of 21-karat gold was priced at EGP 3,175. In January, it peaked at EGP 4,200, and in the most recent trading session, it was recorded at approximately EGP 3,465. Meanwhile, on the global market, gold has risen by about $450 per ounce this year. It opened the year at $2,062 per ounce, reached a historical peak of $2,532, and closed last week’s trading at around $2,512.

The Egyptian pound has significantly declined against the US dollar during the first half of 2024. At the beginning of January, the official exchange rate at the Central Bank of Egypt (CBE) was EGP 30.85 per dollar. By mid-year, the exchange rate had plummeted to EGP 48.86 per dollar. At one point, the dollar exceeded EGP 70 on the parallel market before the CBE intervened to stabilize the market, allowing the exchange rate to be determined by supply and demand mechanisms.

According to reports from the World Gold Council, Egyptians purchased around 33.5 tons of gold during the first half of 2023. This included 14.9 tons of jewelry and 6.9 tons of gold bars. In the first quarter of 2024, gold purchases in Egypt reached approximately 13.8 tons, comprising 8 tons of jewelry and 5.2 tons of gold bars.

Over the past two years, the local gold market in Egypt has witnessed unprecedented levels of activity, driven largely by citizens seeking to protect their savings from the devaluation of the currency.