Iran war disrupts local gold market in Egypt

Gold prices rose locally amid escalating tensions between the US and Israel over Iran, coinciding with the closure of global stock markets.

This prompted some traders to be cautious in their sales and reduce their supply, anticipating a potential price surge upon the reopening of markets.

The Vice President of the Gold and Jewelry Division at the Federation of Egyptian Chambers of Commerce (FEDCOC), Lotfy al-Mounib, said that gold prices in the local market saw a noticeable increase.

He explained that this was due to some wholesalers’ reluctance to sell while global stock markets were closed following the US-Israeli strike on Iran.

This led to price fluctuations, even as the price of an ounce of gold remained stable globally at around $5,280.

Mounib added that the price of 21-karat gold rose to LE 7,250, compared to LE 7,100 at the close of trading on Friday, amidst the prevailing market anticipation of the resumption of global trading.

He noted that geopolitical tensions typically drive prices up, as capital tends to flow out of productive and commercial investments and into gold as a safe haven during times of war and uncertainty, thus increasing demand and raising prices.