The World Gold Council has announced that Egyptian gold purchases fell by 17% in the first quarter (Q1) of 2024, reaching 13.2 tonnes. This is a decrease from the 15.8 tonnes purchased in Q1 2023 but an improvement over the 11.5 tonnes seen in Q4 2023.
Gold jewellery saw increased demand, with Egyptians purchasing 8 tonnes in Q1 2024 – a 3% rise compared to the 7.7 tonnes bought in Q1 2023. Jewellery purchases also outpaced the 6 tonnes bought in Q4 2023.
In contrast, the demand for gold bullion and coins declined significantly. Purchases in Q1 2024 totalled 5.2 tonnes, a 36% decrease from the 8.1 tonnes recorded in the same period of 2023.
Gold Bullion analysts attribute the reduced demand for bullion and coins to improved economic conditions, including the stabilisation of the currency, the end of the black market, and reduced speculation in gold.
The World Gold Council’s report also highlighted a decline in jewellery demand across the wider Middle East region. Purchases fell 4% year-on-year to 42 tonnes in Q1. This was driven by weak demand in the UAE (-10%) and Saudi Arabia (-12%), although Egypt saw an increase (+3%).
High local gold prices in the UAE and Saudi Arabia likely contributed to the decline, while Egypt benefited from lower prices following the appreciation of its currency.
Despite the overall decrease, Egypt’s 13.2 tonnes of gold purchases in Q1 exceeded that of Saudi Arabia (12.4 tonnes), the UAE (10.8 tonnes), and Kuwait (4 tonnes).
