Maturing Bank Certificates Boost Egypt’s Gold Liquidity: Gold Bullion Report
July 25, 2026 — Daily News Egypt
A recent report by Gold Bullion shows banks’ savings certificates reaching maturity. Funds from these certificates now flow into Egypt’s gold market. The bank funds mix with seasonal trends and push gold prices higher.
Gold Prices Climb with Local Demand
In one week, 21-karat gold prices in Egypt rose by 3%. Prices increased by EGP 175 per gram. The week began at EGP 5,805 per gram and closed at EGP 5,980. Prices even reached a monthly high of EGP 6,010 per gram. Gold Bullion’s review indicates gold passed a key level of EGP 5,900 after holding above EGP 5,800. The price then slowed as it neared EGP 6,000. This year, 21-karat gold has shown gains. Its price grew by roughly EGP 150 per gram, or about 2.5%. Earlier, gold suffered losses from tensions in world politics. All over the world, gold prices fell by about 6.2% (around $274 per ounce) since 2026 began.
Market Effects of Exchange Rates and Political Tensions
The report links Egypt’s higher gold prices to a weaker local currency against the US dollar. Political tensions, especially near Iran, stir risk among investors. Over two weeks, around $1.92 billion left Egypt’s debt markets.
Last week, the US dollar moved up by about 1.6% against the Egyptian pound, ending at EGP 51.40. Since early July, the US dollar has gained roughly 4.3%, or more than EGP 2, against the Egyptian pound. This loss in the pound drives up Egypt’s gold price in local money and stokes local demand.
Local Supply and Demand Imbalance in Premiums
The report shows the gap above gold’s fair price in Egypt is growing again after a short drop. This gap comes from a mismatch between gold supply and demand. Lower prices after earlier falls, the summer season, and purchases by Egyptians who return home push the demand higher.
Banks’ certificates maturing also make people see gold as a safe place for their money. This shift from bank deposits to gold pushes local demand further.
Egypt’s Gold Imports Jump Over Fifteenfold
Gold imports in Egypt soared in the first half of 2026. Imports hit $4.05 billion, compared to $249.6 million in the same time in 2025. Gold now stands as Egypt’s top non-petroleum import at 8.4% of all such imports.
This jump shows a strong local wish for gold. The need comes both from everyday use and the need to process gold. Local prices still depend on global trends and shifts in exchange rates.
Global Market and Political Risk Effects
Around the world, gold had its first gain in a week after two weeks of falling prices. Spot gold climbed 0.9%. The week started at $3,995 per ounce, peaked at $4,166, and settled at $4,052. Gold broke past some resistance between $4,080 and $4,100 but then lost speed and finished a bit above $4,000. One factor in the gold market is crude oil. Oil prices rose by 11% and passed $100 per barrel due to military tensions between the United States and Iran and a shutdown at the key Strait of Hormuz.
The jump in oil prices raised concerns about inflation. This makes people expect that interest rates, set by the US Federal Reserve, might stay high for a longer time. Markets now expect two rate hikes for 2026 and see an over 80% chance of a rate increase at the Fed’s September meeting.
The US dollar reached a three-week high by moving up 0.7% during the week. US Treasury yields also hit their highest level in more than 18 months.
Even though a strong dollar and high yields usually reduce interest in gold, the report finds that ongoing political troubles and a risk of long conflict keep gold in favor as a safe choice in both global and local markets.
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Tags: Egypt, Gold, Gold Bullion
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