Gold prices in the Egyptian market have reached the highest level ever, despite the global price of an ounce falling, according to a report by Gold Bullion. This shows that local factors are more influential on the prices than the international ones.
The most popular 21k gold started trading on Tuesday at EGP 3,360 ($109) per gram, and then rose to a record high of EGP 3,400 ($110) per gram. This was after the price increased by EGP 80 on Monday and closed at EGP 3,360 per gram.
The report attributed the price rise to the appreciation of the dollar in the parallel market, which is the basis for pricing gold, as well as the ongoing expectations of a devaluation in the exchange rate, as per Gold Bullion’s analysis.
Meanwhile, several commercial banks have imposed more restrictions on cash withdrawals outside the country. Some banks have prohibited withdrawals from abroad, while others have lowered the withdrawal limit to $50 per month.
This news has raised concerns among market players and pushed the price of the hedge dollar, which is used to price gold, to record levels. This is also due to the persistent geopolitical tensions related to the war on Gaza and the situation in the Red Sea involving the Houthi group in Yemen after they were attacked by US and UK forces.
The current price surge of gold reflects the increase in pricing factors as well as the high demand for gold as a safe haven amid the uncertainty and ambiguity of the economic outlook. Moreover, there are fears of a severe shortage of foreign currency at a time when the International Monetary Fund is urging a devaluation in the exchange rate of the pound to continue the financing program for Egypt.
