What is causing turmoil in Egypt's gold market? Official answers

The prevailing gold prices are unjustifiably high, resulting from surging demand aimed at maximizing profits and a reluctance to sell in anticipation of further price increases, Wassef told Ahram Online.

Over about a month, the purchase price of 21-carat gold has soared by 21.5 percent (or EGP 675), reaching EGP 3,825 compared to EGP 3,150 on 1 January, with the gold pound surpassing the EGP 30,400 mark for the first time.

Wassef added that gold prices are influenced by global precious metal prices, the exchange rate between the Egyptian pound and the US dollar, and supply and demand dynamics.

When asked about the recent instability of the Egyptian pound against the US dollar and its role in the gold market crisis, Wassef asserted that the primary catalyst for the crisis lies in the intense demand for gold amid a scarcity of supply.

Currently, the USD is being traded at over EGP 60 in the parallel market, while the official exchange rate remains at nearly EGP 31 per dollar.