CAIRO — Retail gold prices in Egypt eased on Wednesday, with 14-karat jewelry changing hands at about EGP 4,980 ($161) per gram, traders told SourceRated. The move follows an overnight pull-back in international bullion, which fell below $2,170 an ounce amid caution ahead of next week’s U.S. Federal Reserve policy meeting.
The Cairo Chamber of Commerce’s gold division said benchmark 21-karat pieces — the most commonly quoted grade — were offered at EGP 5,810, down nearly 1.5 percent from Tuesday. “The market is quiet. Ramadan spending is focused on food staples, not wedding sets,” a downtown jeweler said.
Globally, spot gold has surrendered roughly 2 percent since Monday as investors scaled back bets on rapid U.S. rate cuts after hotter-than-expected inflation data. “Higher yields make the non-interest-bearing metal less attractive, and that weakness is feeding through to import-dependent countries like Egypt,” said Karim Mostafa, metals strategist at Cairo-based Pharos Holdings.
Domestic bullion prices are also sensitive to the pound, which has steadied around 48 to the dollar following this month’s record $35 billion UAE investment pledge. The calmer currency backdrop has narrowed the hefty premium Egyptians previously paid over global benchmarks to hedge against devaluation risk.
Still, Egypt remains one of the Middle East’s largest gold consumers. Central Bank data show the country imported about $3 billion worth of the metal last year as households sought a store of value during successive pound devaluations. “If the Fed signals it is done hiking, we could see another wave into gold — and local prices would climb even if the currency holds,” Mostafa added.
Looking ahead, analysts say the trajectory of U.S. rates and tourism-driven hard-currency inflows will determine whether local gold stays affordable through the Eid shopping season. Any renewed pressure on the pound or escalation in regional tensions, they warn, could quickly push 14-karat pieces back above the EGP 5,100 mark.