The price of gold in Egypt records a new high

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Gold prices in Egypt rose during trading today, Tuesday, as a gram of 21 carat gold, the most common in Egypt, rose to 6,190 pounds, an increase of 25 pounds, equivalent to about 0.41%.

The local movement comes amidst the intersection of various economic and geopolitical factors, most notably the continuation of US-Iranian tensions, the anticipation of US inflation data, and the movements of the dollar globally and locally, in addition to the impact of Treasury bond yields and US monetary policy expectations, according to data from the “iSagha” platform for trading gold and jewelry online.

The price of a gram of 24-karat gold was about 7,074 pounds, and 18-karat gold was about 5,306 pounds, while the price of a gold pound was 49.52 thousand pounds, while an ounce recorded about 4,187 dollars.

Saeed Embabi, Executive Director of the iSagha platform, said that geopolitical tensions remain an important factor in gold pricing, but they alone do not guarantee its continued rise. He explained that the market is simultaneously dealing with the strength of the dollar and interest and inflation expectations, which may lead to the emergence of political news that supports the metal, while monetary pressures limit its price response.

Embabi added that evaluating the movement of gold in Egypt requires looking at the price of an ounce, the exchange rate of the dollar, and local pricing mechanisms together, while comparing prices at simultaneous times, to determine the factor that most influences the price movement instead of attributing every change to a single piece of news.

The data indicates that the price of the dollar moved from about 52.70 pounds to 52.85 pounds, which affects the fair value of gold in Egyptian pounds. The rise in the dollar leads to an increase in the fair price of gold locally when the global price of an ounce remains constant, and vice versa.

On the other hand, estimates showed that the local price of gold is less than the fair price by about 32 pounds per gram in today’s trading, compared to about 20.35 pounds in yesterday’s trading, which reflects the widening of the negative price gap.