Egypt gold prices fall amid market pressure
The gold market in Egypt experienced a significant decline last week, with 21-karat gold losing about 245 Egyptian pounds, a decrease of 3.7%. It opened at 6,600 pounds per gram and fell to 6,350 pounds, despite monthly gains of approximately 420 pounds, or about 7%. This downturn is attributed to a drop in the global gold price, along with a 1.4% decline in the US dollar against the Egyptian pound, increased reverse sales by consumers, and weak local demand. These factors created a negative price gap, making the local price lower than its fair value. On the global level, the gold ounce decreased by 3.2%, with prices fluctuating due to an inability to sustain previous gains after statements from the Federal Reserve Chair emphasizing ongoing inflation risks and uncertainty over interest rate decisions. This situation heightened interest in U.S. Treasury bonds and increased the cost of holding gold. Analysts expect continued pressure on gold prices, with a key support level at 6,350 pounds for 21-karat gold. Short-term correction trends are currently being hindered amid heightened market volatility.
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