Egyptians Gold Purchases Drop to 5-Year Low in Q3 2026

Egyptian Gold Purchases Drop to a Five-Year Low in the Third Quarter of 2026

Egyptian gold purchases fell to 9.7 tons during the third quarter of 2026, marking the lowest quarterly volume in five years according to data released by the World Gold Council. This figure represents a 12.6 percent decline compared to the second quarter of the same year, when purchases reached 11.1 tons, and a three percent drop year-on-year from the 10 tons recorded in the third quarter of 2025.

Household Budgets Squeeze Jewelry Demand While Bullion Finds Support

The contraction in demand hit manufactured gold jewelry the hardest, dropping to 3.8 tons in the third quarter of 2026. This marks a 12 percent decline from the same period last year and the lowest level since the second quarter of 2020 during the coronavirus pandemic. The World Gold Council explained that ongoing inflation, high interest rates, and the reduction of subsidies squeezed household budgets, restricting consumer purchasing power and weighing heavily on jewelry demand.

In contrast, purchases of gold bars and coins reached 5.9 tons during the third quarter of 2026. This segment rose five percent compared to 5.6 tons in the third quarter of 2025, though it retreated from the 6.2 tons purchased in the second quarter of 2026. Gold Billion noted that this persistent demand for investment gold demonstrates that households still view the metal as a tool for savings and hedging against currency devaluation, even as total buying volumes shrink.

Weak Egyptian Pound Drives Local Bullion Demand

Egypt moved against the broader regional trend by maintaining an appetite for bullion despite overall purchase declines. The World Gold Council pointed out that a weak Egyptian pound enhanced the defensive appeal of the precious metal as a store of value.

Local market pricing faced downward momentum as domestic rates tracked declining global bullion prices and a gradual decrease in the exchange rate of the dollar against the Egyptian pound. Gold Billion reported that the 21-karat gold, the most actively traded purity in Egypt, opened trading at 6,110 Egyptian pounds per gram before trading around 6,130 pounds, down from its previous close of 6,155 pounds. Gold Billion observed that downward pressure persists near the 6,100-pound threshold after prices failed to hold above 6,150 pounds.

Global Market Slowdown and Shifting Investor Priorities

Worldwide investment trends matched the local contraction in certain segments. The World Gold Council revised its global investment growth forecast for the year downward to 200 tons from an earlier estimate of 400 tons, citing a slowdown in bar and coin demand during the second half of 2026. Global demand for bars and coins dropped 19 percent year-on-year to 268 tons, while jewelry consumption fell 17 percent to 313 tons, marking the lowest third-quarter consumption level since record-keeping began in 2000.

Gold Billion observed that the shift away from manufactured jewelry does not signal a total abandonment of gold ownership, but rather a strategic pivot by consumers toward products with lower manufacturing fees.