Globally, gold prices reached unprecedented highs, surpassing all the expectations of international institutions, to hit $2,500 per ounce.

Locally, gold prices rose significantly, with 24K reaching EGP 4,074 per gram, 21k gold reaching EGP 3,565 per gram, and 18k gold EGP 3,055 per gram.

In times of crisis. gold represents a major safe savings haven for people and investors alike.

In Egypt, the public acquires gold in two main ways: buying gold at jewelers or purchasing investment certificates via gold investment funds.

In recent years, Egyptians adopted buying gold as a safety net measure to fend against the economic repercussions of the COVID-19, the Russian-Ukrainian war, and a global inflationary wave that reduced the value of the Egyptian pound.

Earlier in September, Chairman of the Financial Regulatory Authority (FRA) Mohamed Farid Saleh revealed that 131,000 citizens invested in gold investment funds at EGP 925 million.

Three gold investment funds have been launched in the country since May 2023 to meet increasing demand on gold in the country: AZ gold by Azimut Egypt, Beltone Evolve Gold Investment Fund (AKA Sabayek, and Al Ahly Financial Investment Management.

Where are gold prices headed?
 

Ahmed Morshed, head of financial advisory and wealth management at Azimut Investments Egypt, told Ahram online that the monetary easing policies recently adopted by the Federal Reserve and rising global geopolitical tensions could keep gold prices on an upward trajectory till the end of 2025.

“Gold prices could reach $2,700 to $2,800 per ounce by the end of the year if the Federal Reserve decides to implement another interest rate cut either by 50 points in one step or lower it by 25 points at a time in two steps.”

As for Egypt, Morshed forecasted that gold prices could reach EGP 4,250 TO 4,300 per gram by the end of the year.

Amir Rezk, a member of the Goldsmiths and Jewelers Association, forecasted that an ounce of gold could reach $3,500 if the Federal Reserve decides to cut interest rates again.

Rezk also forecasted that gold prices in Egypt could increase in the near future, with the prices for 21K rising to EGP 3800-EGP 4,000 per gram by the end of the year and those for 24k gold reaching EGP 6,000 per gram by 2026.

Lotfi El-Monieb, deputy head of the Gold Division at the Federation of Egyptian Chambers of Commerce (FEDCOC), explained to Ahram Online that gold prices increased immediately after the Federal Reserve cut interest rate from $2,500 to $2,900 but dropped to $2,620 per ounce.

However, Rezk said China, India, Russia and Europe are planning to use gold as a hedge against their currencies, which could increase gold prices globally in the near future.

Physical gold vs gold funds
 

Morshed told Ahram Online people prefer to buy gold through gold investment funds instead of buying physical gold for a variety of reasons.

One reason is investment funds allow for fractional investment, he said.

They also provide convenience and safety for buyers because gold is stored in the vaults of Easy Cash company which is the only custodian of precious metals in Egypt

Finally, gold investment funds buyers the option of redeeming their investments either in-cash or in-kind starting from 50 grams, added Morshed.

However, El-Monieb and Rezk said investing in physical gold is better than investment in gold funds because it offers buyers the option of liquidating their assets at any time.