Significant fluctuations in gold prices have recently dominated the market in Egypt, creating a tumultuous environment for investors and traders alike. The price of 24-carat gold reached EGP 3,657 (USD 118.76) Egyptian pounds for selling on Friday, 5 January, Reports have emerged detailing instances of trading platforms experiencing abrupt shutdowns, resulting in hours-long suspensions of all buying and selling operations. Nagy Farag, the Advisor to the Supply Minister for Gold Industry Affairs, explained that global factors, including a USD 100 (EGP 3079) increase in the international gold price, have led to the rise in gold prices in the local market, surpassing the unprecedented EGP 3,000 (USD 97.42) mark. “With the surge in local demand in a short period, this leads to unjustified and sometimes illogical increases – as is the case with the current situation – and accordingly, the price ends up not corresponding to global or local conditions,” he added to Sky News Arabia. Among the prominent factors contributing to these dynamics is the increasing buying waves for hedging, as Egyptians anticipate a new devaluation of the Egyptian pound expected to take place at the beginning of the coming…
Egypt’s Gold Market Experiences Turbulence with Record-Breaking Prices
January 5, 2024
