Gold Prices Plunge in Egypt Amid Global Market Calm
Cairo, Egypt – December 6, 2025 - Egyptian gold markets experienced a sharp downturn today, with the price of 21-karat gold falling by approximately 15 egyptian pounds to 5,610 pounds per gram, excluding manufacturing costs.The unexpected drop arrives during a global market holiday, highlighting the unique dynamics influencing the local precious metals trade.
The decline impacts jewelers,investors,and consumers across Egypt,potentially signaling a shift in market sentiment. Traders are closely monitoring both international economic indicators and domestic demand as they navigate this new period of volatility. This price adjustment follows a week of focus on anticipated interest rate decisions by the U.S. Federal Reserve, a key driver of gold’s performance.
Currently, 24-karat gold is trading at 6,411 pounds, while 18-karat gold is available for 4,809 pounds. The gold pound – equivalent to eight grams of 21-karat gold – is valued at 44,880 pounds.
Analysts attribute gold’s sensitivity to U.S. interest rate expectations to its role as a non-yielding asset. Lower interest rates typically boost gold’s appeal by reducing the opportunity cost of holding it.Expectations of a slowing global economy through 2026 are further fueling anticipation of Federal Reserve rate cuts, potentially drawing investors back to gold.
Market observers now estimate an 87% probability of a rate reduction in December, a significant increase from the 50% probability assessed last week. Recent statements from Federal Reserve officials, including San Francisco President Mary daly and Governor Christopher Waller, have reinforced these expectations, contributing to the current market climate.
