The price of gold in Egypt records a new loss

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Gold prices in Egypt continued to decline during Thursday's trading, coinciding with continued pressures resulting from the strength of the dollar and the rise in US Treasury bond yields, while markets await developments in US monetary policy and the Federal Reserve's decision expected later this month.

The price of a gram of 21 carat gold, the most widely traded in the Egyptian market, fell to 6,110 pounds, down by about 5 pounds, or by 0.08%, according to the “iSagha” platform for trading gold and jewelry online.

The limited movement in the Egyptian market comes amid a state of fluctuation in global gold prices, as a result of the interplay of a group of disparate factors, most notably geopolitical tensions in the Middle East, and changing US interest rate expectations, in exchange for the continued strength of the dollar and the rise in Treasury bond yields.

The price of a gram of 24 karat gold was about 6,983 pounds, while the price of a gram of 18 karat gold was about 5,237 pounds, and the price of a gold pound was about 48.9 thousand pounds, while an ounce was about 4,116 dollars.

Saeed Embabi, CEO of the iSagha platform, said that the limited decline in gold prices locally during the recent period reflects a state of relative balance in the market.

He explained that the decrease in the gap between the local price and the theoretical value of gold from about 52 pounds to 27 pounds indicates a greater convergence between local pricing levels and external factors affecting the value of the precious metal.

Mbappe added that the global scene is still complex, as geopolitical tensions provide support for gold as a hedging asset, while the strength of the dollar and the rise in US bond yields work in the opposite direction, which explains the limited upward gains for the precious metal despite the continuing geopolitical risks.