Maturing Bank Certificates Drive Increased Liquidity into Egypt’s Gold Market
July 25, 2026 | Daily News Egypt
A report by Gold Bullion shows that bank certificates mature and free funds. These funds move to Egypt’s gold market and raise buyer demand. This shift aligns with summer trends and pushes up gold imports in the first half of 2026. ### Rising Local Gold Prices Amid Increased Demand
Gold prices in the local market moved up by 3% over one week. The price started at EGP 5,805 per gram and ended at EGP 5,980 per gram. At one point, it hit EGP 6,010 per gram. The price pushed past EGP 5,900 after setting a base above EGP 5,800. Then the rise slowed near EGP 6,000. For the year, 21-karat gold prices added about EGP 150 per gram. This marks a 2.5% gain after previous drops caused by local and global fights.
Exchange Rate Dynamics and Geopolitical Factors
Global gold prices fell by 6.2% since early 2026. In contrast, Egypt’s market holds strong. The strength links to the Egyptian pound weakening against the US dollar. Regional conflict makes the local currency fall. Last week, the US dollar grew by 1.6% to close at EGP 51.40. Since early July, it rose by 4.3%. The weaker pound pushes up gold prices at home.
Investors worry over conflict with Iran. They pull out funds from Egypt’s debt market. In two weeks, nearly $1.92 billion left the market.
Market Demand and Liquidity Shifts
The report states that the price extra over fair gold value grows again after a brief drop. Lower prices draw buyers. The summer break and Egyptians returning from abroad add to the demand. Maturing bank certificates give investors a reason to move funds from banks to gold, which in turn lifts the local market.
Surge in Gold Imports
Imports of gold into Egypt reached $4.05 billion in the first half of 2026. This figure soars compared to $249.6 million during the same period last year. Gold now stands as the largest import item outside of oil. It makes up 8.4% of non-oil imports. The jump hints at rising need for gold in both use and processing, as local prices tie to international costs and exchange changes.
Global Gold Market Context
Around the world, gold saw its first weekly rise after two weeks of decline. Spot prices grew by 0.9%, moving from $3,995 to reach a high of $4,166 per ounce. Soon after, prices settled near $4,052 per ounce. For a short time, gold passed a zone between $4,080 and $4,100 per ounce before slowing down and closing above $4,000. At the same time, crude oil jumped by 11%. Oil prices pushed past $100 per barrel for the first time in two months. Military actions between the United States and Iran and the closure of a key shipping route forced this jump. The route, known as the Strait of Hormuz, handles about 20% of world energy shipments.
Market Implications: Inflation, Rates, and Safe-Haven Demand
The jump in oil prices has raised fears of faster price rises. Many now expect interest rates to stay high longer. Markets count on two US Federal Reserve rate hikes in 2026. There is over an 80% chance of a rate rise at the September meeting. Yet the Fed may leave rates unchanged at the next policy meeting.
Last week, the US dollar reached a three-week high by gaining 0.7%. US Treasury yields also hit levels unseen in over 18 months. Even if a stronger dollar and high rates usually slow buying of assets like gold, ongoing risks keep gold a safe asset for many.
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