Egyptian gold prices surge with global market increase
Egyptian gold prices surge with global market increase

Egyptian gold prices surge with global market increase

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Gold prices in Egypt rose on Wednesday by EGP 75, reaching EGP 2,205 for the 21-karat gold gram, up from EGP 2,130 a day earlier, according to the Egyptian Gold and Jewellery Trade Division of the Egyptian Federation of Egyptian Chambers of Commerce (EGAJTD).

The rise in gold rates in Egypt followed the international increase, with gold rising by 0.1 percent to $2,022 per ounce, up from $2,000 the previous day, according to Bloomberg.

The highest recorded gold price was registered in August 2020 at $2,075 per ounce, according to Refinitiv data.

In Egypt, the price for 24-karat gold gram was priced at EGP 2,520 on Wednesday, up from EGP 2,434 a day earlier, while 18-karat gold gram recorded EGP 1,890 up from EGP 1,826 on Tuesday, according to EGATD.

The EGAJTD is not responsible for pricing and monitoring in the local market but only announces the prices at which gold is traded. The rise in prices of gold in Egypt comes after they had dropped by around 3.18 percent on Monday after new high-yield certificates of deposit (CDs) issued by the National Bank of Egypt (NBE) and Banque Misr collected EGP 67 billion ($2.16 billion) in proceeds on the first 24 hours of the issuance.

However, the proceeds of the certificates slowed down on Tuesday, recording EGP 109 billion in three days. According to the most recent government numbers, Egypt’s headline inflation eclipsed 31 percent in February, while core inflation reached 40 percent. Egypt raised its key interest rates by a total of eight percentage points (800 basis points) in 2022 as a crucial tool for taming accelerated inflation.