Gold prices in Egypt declined over the weekend, tracking a global pullback after a sharp correction in international markets at the end of last week, according to iSagha, a gold pricing platform.
The price of 21-carat gold, the local benchmark, fell by around EGP 80 (USD 1.7) on Saturday, 31 January, to EGP 6,670 (USD 141.43) per gram, according to data reported by iSagha. Over the course of the week, prices showed wide swings, opening at EGP 7,350 (USD 155.90) and closing at EGP 6,750 (USD 143.15), a weekly decline of roughly EGP 600 (USD 12.73) per gram.
Globally, gold ended the week down 1.9 percent, despite posting strong monthly gains of 13.4 percent. The price of an ounce dropped by about USD 93 (EGP 4,385.88) to close at USD 4,895 (EGP 230,848.20), after reaching a record high of USD 5,602 (EGP 264,190.32) earlier in the week.
According to iSagha CEO Saeed Embaby, 24-carat gold reached EGP 7,623 (USD 161.68) per gram, 18-carat gold stood at EGP 5,717 (USD 121.20), and the gold pound was priced at around EGP 53,360 (USD 1,131.35).
Embaby said local prices had recently been trading between EGP 300 (USD 6.36) and EGP 500 (USD 10.61) above their global equivalents. He noted that rapid international fluctuations and strong demand made immediate adjustments difficult for some traders, but added that the pricing gap has narrowed to about EGP 230 (USD 4.88) as the market begins to realign.
He stressed that trading activity did not stop entirely during the volatility, although some speculative traders paused operations. Others continued buying and selling based on available inventory. Embaby added that the recent declines do not necessarily signal the end of the broader upward trend.
The surge in global and local prices in recent weeks has driven unusually high demand in Egypt, particularly for gold bars and coins used as savings instruments, while demand for jewellery has declined. Some manufacturers have reported delivery delays of up to three weeks due to pressure on supply.
Internationally, gold and silver recorded losses on Friday in one of the steepest correction sessions after strong gains earlier in January. The drop followed the nomination of Kevin Warsh to head the US Federal Reserve, which boosted the US dollar and pushed Treasury yields higher, pressuring precious metals.
The US dollar index rose 0.74 percent, while the yield on the 10-year US Treasury note climbed to 4.247 percent. Strong US inflation data also supported expectations that interest rates would remain elevated, weighing further on gold prices.
Despite the recent pullback, analysts say fundamental factors supporting gold remain in place, including global economic uncertainty, rising debt levels, and geopolitical risks.
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