Prices went down on Monday. By the end of trading, the price of 21K gold decreased to EGP 1,180 per gram, down from EGP 1,200 compared to a day earlier.
Also, the price of 18K gold decreased to EGP 1,011 per gram, down from EGP 1,030, while 24K gold reached EGP 1,348 per gram, down from EGP 1,370.
Egypt’s local gold market saw high demand over the past few days after the US Federal Reserve (Fed) hiked its benchmark interest rates by 0.5 percent (50 basic points), which took place during the Eid El-Fitr holiday.
A number of gold retailers in the local market responded by halting selling and buying operations and adopting a “wait and see” approach amid expectations of a hike in the US dollar globally and a further devaluation of the Egyptian pound.
The Fed raised its benchmark interest rates by 0.75 percent (75 basic points), in total, after the breakout of the Ukraine war in March in a bid to contain the severe impacts of a global inflationary wave, targeting a total 2.8 percent increase in the interest rates through the end of 2022.
Responding to the ongoing economic challenges, the Central Bank of Egypt (CBE) hiked its key interest rates unexpectedly in March by 1 percent (100 basic points) and devaluated the Egyptian pound against the US dollar by 14 percent.
Since March, the US dollar’s trading prices recorded a five-year high as a result.
On Monday, the US dollar price continued its rise to register its highest level in two decades, as demand for the greenback accelerated as people searched for safe havens for investing and saving to hedge against the forecasted economic slowdown.
While the US dollar price was stable at EGP 18.44 for buying and 18.52 for selling at the CBE, it rose to EGP 18.48 for buying and EGP 18.52 for selling at other national and private banks on Monday.