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المصري اليوم
Interest Rate Impact on Gold Prices
Reports indicate that the relationship between interest rates and gold in Egypt does not follow the traditional rule stating that raising interest rates decreases gold prices. Instead, both have risen together from 2022 to 2026. In 2022, interest rates increased from 8.25% to 16.25%, and the price per gram of gold rose from about 800 to 1,675 Egyptian pounds. The upward trend for both continued through 2023 and 2024, especially with record-breaking interest rate hikes reaching 27.25% in March 2024, alongside the strengthening of the dollar against the Egyptian pound and a decline in inflation in 2025. While the decision on interest rates influences the timing of purchases and liquidity levels, the final gold price is primarily determined by the strength of the dollar and global ounce prices, rather than solely by the level of interest rates.
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