Gold prices in Egypt continued their upward trajectory at the start of September 2025, driven by strong global trends and a weakening local currency. Despite a recent interest rate cut by the Central Bank, domestic gold rates remain closely tied to global ounce prices and exchange rate movements. Here’s a comprehensive look at current prices and the market dynamics behind them.
Gold prices in Egypt as of September 1, 2025
Gold prices across all purities saw fresh gains on Monday, with 21-carat gold — the most commonly traded purity in Egypt — priced at ₤4,685 per gram. Here’s the full breakdown:
- 24-carat: ₤5,354 per gram
- 21-carat: ₤4,685 per gram
- 18-carat: ₤4,015 per gram
- 14-carat: ₤3,080 per gram (excluding craftsmanship charges)
- Gold pound (8 grams of 21-carat): ₤37,480
These figures reflect the market rate excluding workmanship and retailer premiums.
What’s driving the price increase?
Several economic forces have contributed to the steady rise in local gold prices:1. Global gold rally
- International gold markets have seen a strong upswing, with gold prices breaking through the $3,430 per ounce resistance level.
- The surge is largely attributed to rising expectations that the U.S. Federal Reserve may begin cutting interest rates in the near future.
- Market analysts now consider the $3,500 per ounce level a key psychological target, especially as the U.S. dollar continues to weaken.
2. Egyptian pound depreciation
- The Egyptian pound has declined against the U.S. dollar, which directly impacts local gold prices.
- Since gold in Egypt is priced based on the global ounce rate and the exchange rate, any drop in the pound’s value translates to higher domestic prices.
3. Recent local monetary moves
- In a significant step, the Central Bank of Egypt cut interest rates by 200 basis points in August.
- Deposit rate: Reduced to 22%
- Lending rate: Now 23%
- Main operation rate: Set at 22.5%
- However, this rate cut has had limited immediate impact on gold prices, which remain more responsive to global market trends and currency shifts.
4. Investment shift expected
- With several bank investment certificates approaching maturity, some liquidity is expected to flow toward gold and stock markets, further bolstering demand for the yellow metal in the medium term.
August trends recap
- Monthly movement: The price of 21-carat gold rose from ₤4,518 at the beginning of August to ₤4,690 by month-end — an increase of ₤172, or about 3.8%.
- Weekly change: In the final week of August alone, prices climbed 2.2%, ending at ₤4,685 after starting the week at ₤4,585.
- Daily fluctuations: Throughout the last week, 21-carat prices ranged between ₤4,565 and ₤4,690 per gram.
