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Gold Prices Surge in Egypt Amidst Global Rally and Anticipated US Interest Rate Cuts

Egypt’s gold market is experiencing a significant upswing, with prices reaching levels unseen since April 2025. This surge is primarily driven by a substantial increase in the global price of gold, which has surpassed $3,635 per ounce. This global rally, coupled with growing anticipation of interest rate cuts by the US Federal Reserve, has propelled the price of the widely popular 21-karat gold in Egypt to 4,910 Egyptian pounds.

Current Gold Prices in Egypt:

The latest gold prices in the Egyptian market reflect this upward trend:

• 24-karat gold: 5,611 Egyptian pounds
• 21-karat gold: 4,910 Egyptian pounds
• 18-karat gold: 4,208 Egyptian pounds
• Gold pound: 39,280 Egyptian pounds

Factors Driving the Gold Price Surge:

Several factors are contributing to the current surge in gold prices, both globally and in Egypt:

• Global Gold Rally: The primary driver is the significant increase in the global price of gold, which has surpassed the $3,635 per ounce mark. This surge is often attributed to various factors, including geopolitical uncertainties, economic concerns, and the appeal of gold as a safe-haven asset.

• Anticipation of US Interest Rate Cuts: Expectations of interest rate cuts by the US Federal Reserve are also playing a crucial role. Lower interest rates typically weaken the US dollar, making gold, which is priced in dollars, more attractive to investors holding other currencies. Additionally, lower interest rates reduce the opportunity cost of holding gold, as it doesn’t offer a yield like bonds or savings accounts.

Standard Chartered Bank’s Prediction of Aggressive Rate Cuts:

Standard Chartered Bank has revised its forecast for the Federal Reserve’s monetary policy, now anticipating a more aggressive rate cut of 50 basis points during the upcoming policy meeting this month. This is double their previous expectation of a 25-basis-point reduction. This revised forecast is largely influenced by recent data indicating a weakening US labor market.

Weakening US Labor Market Signals Economic Concerns:

Recent economic data from the United States has revealed a significant slowdown in job growth during August. Simultaneously, the unemployment rate has risen to 4.3%, reaching its highest level in approximately four years. These figures point to a weakening labor market, bolstering the rationale for the Federal Reserve to implement interest rate cuts this month.

Standard Chartered Bank, in a note to its clients, highlighted the rapid shift in the labor market dynamics, stating that “the labor market has transitioned from robust to weak in less than six weeks.” This sharp turnaround in the labor market outlook has prompted the bank to revise its expectations for the Federal Reserve’s policy response.

The bank further stated that “the August labor market data paved the way for a preemptive 50-basis-point cut at the Fed’s September meeting, similar to what occurred around this time last year.” This suggests that the Federal Reserve may be inclined to take decisive action to address the weakening labor market and prevent further economic deterioration.

However, Standard Chartered Bank also cautioned that such a significant rate cut could lead to a prolonged period for markets to fully assimilate the slower pace of subsequent rate reductions. This implies that while an initial aggressive rate cut may provide immediate relief, it could create challenges for future monetary policy decisions and market expectations.

Impact on the Egyptian Gold Market:

The global gold rally and the anticipation of US interest rate cuts have a direct impact on the Egyptian gold market. As the global price of gold rises, it becomes more expensive to import gold into Egypt, leading to higher prices for consumers. The expected weakening of the US dollar due to interest rate cuts further contributes to the rise in gold prices in Egyptian pounds.

Conclusion:

The Egyptian gold market is currently experiencing a surge in prices, driven by a combination of factors, including a global gold rally and expectations of US interest rate cuts. The weakening US labor market has prompted some analysts to anticipate aggressive rate cuts by the Federal Reserve, which could further fuel the rise in gold prices. These factors have created a favorable environment for gold investors in Egypt, but it also poses challenges for consumers who are looking to purchase gold for investment or personal use. As the global economic landscape continues to evolve, it is essential to monitor these factors closely to anticipate future trends in the Egyptian gold market.