Gold prices in Egypt surged by 7% over the past week, rising by EGP 310 to close at EGP 4,690 per gram during Saturday's trading—the highest level recorded this week. This jump continues a sharp upward trend driven by soaring global gold prices and a persistently strong US dollar against the Egyptian pound. According to Gold Bullion analysis, gold opened the week at EGP 4,380 per gram before climbing steadily to its current record high. The increase in local prices was largely supported by the global gold rally, which has seen international prices break historic records due to rising demand for safe-haven assets. Despite a slight pullback in the USD/EGP exchange rate during Friday's session, the global momentum in gold markets more than offset the local currency fluctuations. The dollar continues to trade near record highs against the pound, further contributing to the uptick in local gold pricing.
Global Drivers and Market Sentiment
Globally, gold prices recorded their strongest weekly gain since March 2023, with the price of an ounce rising by 6.6%. The precious metal broke through the psychological $3,200 barrier, peaking at a historic $3,245 per ounce before closing the week slightly lower at $3,237. The rally was fueled by heightened demand for gold as a safe-haven investment amid global market uncertainty, exacerbated by geopolitical tensions and disruptions related to trade tariffs introduced by former US President Donald Trump. These developments triggered a notable weakening of the US dollar and reduced appetite for US government bonds—factors that traditionally support gold's upward movement.
Domestically, inflation figures show a mixed picture. The Central Bank of Egypt (CBE) reported a slowdown in core inflation to 9.4% year-on-year in March, down from 10% in February—marking the lowest level since February 2022. Core inflation excludes volatile items such as food and fuel. However, headline inflation, as reported by the Central Agency for Public Mobilization and Statistics (CAPMAS), rose to 13.6% in March from 12.8% in February. This is the first uptick in headline inflation since October 2024. Meanwhile, Egypt's trade deficit narrowed slightly in January 2025, reaching $3.42bn compared to $3.44bn a year earlier—a marginal decline of 0.58%, according to the Central Auditing Organization.
Outlook
With global gold prices maintaining their bullish momentum and the local exchange rate still elevated, analysts anticipate that domestic gold prices in Egypt may continue to climb in the short term. The absence of a significant correction in international markets suggests that the upward trend could persist, barring any major shifts in macroeconomic or geopolitical dynamics.
