File Photo: Gold bars. AFP
Moreover, prices of other gold karats have risen to record EGP 1,863 per gram for the 24-karat gold and EGP 1,397 per gram for the 18-karat gold.
The gold pound price recorded EGP 13,400.
Advisor of Egypt’s supply minister for gold industry Nagi Farag stated that the unprecedented hikes of gold prices is a result of the high demand on the yellow ore.
Individual buyers, he said, consider gold a safe haven that would help them weather ongoing global economic challenges as well as the reported decrease in the Egyptian pound exchange rate versus the US dollar.
The US Fed is expected to raise its benchmark interest rate by 0.5 percent in its 14 December meeting, down from the 0.75 rise it implemented over the past four meetings.
The Fed has raised the interest rate by three percent since the onset of the war between Russia and Ukraine.
Since the beginning of 2022, gold prices in the Egyptian market have jumped by over 45 percent, under the pressures of the Russian-Ukrainian conflict and the US dollar prices fluctuations.
Head of gold and precious ores division at the Federation of Egyptian Industries Ihab Wassef said that the depreciation of the Egyptian pound against the US dollar also contributes to the current rising in gold prices.
Since the onset of the war in Ukraine, the Central Bank of Egypt (CBE) has hiked the key interest rates by a total of five percent (500 basic points), devaluating the Egyptian pound by over 20 percent.
At the end of Tuesday's trading at major Egyptian banks, the US dollar traded at EGP 24.56 for buy and EGP 24.64 for sell , according to the CBE’s rates.
Driven by the unprecedented hikes in gold prices in the local market, a number of gold sellers announced that they will fix the prices of both gold jewellery and the golden pound at Monday’s rates in a bid to curb the immense increases in gold prices in the local market.