21-karat gold climbs 2.2% in less than two weeks despite falling international bullion prices, exposing the growing influence of currency depreciation on Egyptian savings and purchasing power.
CAIRO, Gold prices in Egypt have risen 2.2% in less than two weeks despite a decline of approximately 3.3% in international bullion, as depreciation of the Egyptian pound cushions domestic prices against the global sell-off.
The price of 21-karat gold, Egypt’s most widely traded grade, reached EGP6,390 per gram in Wednesday morning quotations, up EGP140 from October 17, according to Egyptian financial news platform Masrawy. Prices exclude jewellery-making charges.
Internationally, spot gold fell to $4,030.20 an ounce on Wednesday morning, according to Reuters, compared with approximately $4,166 on October 17.
The divergence reflects the growing influence of Egypt’s exchange rate on domestic gold pricing. The dollar rose from approximately EGP53.45 on October 17 to EGP56.20 on October 27, an increase of about 5.1%, according to market reports and Central Bank of Egypt data.
The Gold and Precious Metals Division of the Federation of Egyptian Industries, headed by Ehab Wassef, reported that 21-karat gold gained 1.63% during the week ending October 17, rising from EGP6,150 to EGP6,250. It advanced another 0.5% to EGP6,280 the following week, despite a reported 4.1% decline in international bullion.
Independent market figures broadly support the trend, although quotations differ. Egyptian gold-pricing platform iSagha, cited by Al-Ahram, calculated a 1.54% increase during October 10–17, based on a slightly higher opening price.
Saeed Embaby, iSagha’s executive director, attributed the divergence to the combined effects of international bullion prices, exchange rates and domestic pricing mechanisms.
An illustrative calculation using the October 17 and latest available international prices and exchange rates suggests a roughly 1.7% increase in gold’s pound-denominated reference value. The difference from the 2.2% domestic rise cannot be precisely attributed without matching transaction times, pricing conventions and local premiums.
The currency pressure coincides with renewed foreign selling of Egyptian government securities and volatility in domestic equities. Reuters reported that the pound breached EGP56 per dollar on October 26, reflecting heightened financial-market uncertainty.
For Egyptian households, the consequences extend beyond gold purchases. Currency depreciation can raise the local cost of imported goods and production inputs, while sustaining bullion prices even when international markets weaken. Gold offers exposure to currency movements, but a strengthening pound combined with falling global prices could reverse recent gains.
Attention now turns to the Federal Reserve’s interest-rate decision on Wednesday and the Central Bank of Egypt’s monetary-policy meeting on Thursday, October 29. Egyptian overnight deposit and lending rates stand at 19% and 20%, respectively.
Higher international interest rates can weigh on gold by increasing the appeal of interest-bearing assets, while continued pressure on the pound can offset some of that decline domestically.
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