Cairo, Egypt – June 24, 2024 – Gold prices in egypt experienced a slight increase this past week, closing at 4615 Egyptian pounds per gram for 21-karat gold, a rise of 0.44% or 20 pounds, according to the Head of the Gold Division, Nady Wasif. this follows a period of gains in the global market, driven by increased demand for safe-haven assets amid ongoing international trade tensions and expectations of potential interest rate cuts.
The upward trend in the Egyptian market coincides with a significant surge in non-cash raw gold imports. Data released by the Central Agency for Public Mobilization and Statistics (CAPMAS) reveals a 199.1% increase in the value of these imports during May, reaching approximately 71.04 million USD compared to 23.75 million USD in May 2023 – a difference of 47.29 million USD. This substantial increase suggests a growing trend of importing gold for re-export, a practise Wasif highlights as a key driver of export growth and local value addition.
Globally, spot gold prices rose by roughly 1% over the week, opening at 3364 USD per ounce, peaking at 3409 USD, and ultimately closing at 3397 USD. While the price briefly surpassed the 3400 USD mark,the momentum proved unsustainable,indicating a potential weakening of the upward trend. The global gains were further fueled by recent announcements regarding potential U.S. customs duties on gold imports, adding to the appeal of gold as a secure investment.
The Egyptian gold market is closely tied to international fluctuations,with domestic prices reacting to global economic indicators and geopolitical events. CAPMAS data indicates a consistent monitoring of gold import/export activity, providing valuable insights into Egypt’s role in the global gold trade. The re-export of gold contributes to Egypt’s foreign exchange earnings and supports local businesses involved in refining and trading the precious metal. Further analysis of CAPMAS data reveals that Egypt’s gold imports have been steadily increasing over the past year,reflecting a growing demand for gold within the country and for re-export purposes.
Nady Wasif, speaking on behalf of the Gold Division, emphasized the importance of monitoring global market developments and their impact on the Egyptian gold sector. He noted that continued trade tensions and potential shifts in interest rate policies will likely continue to influence gold prices in the coming weeks.
