3 minutes read | 15/08/25 - 21/08/25
Market Watch
Weekly Change of Local & International Gold Prices
| Start | Close | Weekly Change | |
|---|---|---|---|
| International Gold (LBMA) ($/Oz) | $3,348 | $3,340 | ↑ %0.23 |
| International Gold (LBMA) ($/g) | 107.64 | 107.38 | ↑ %0.24 |
| International Gold ($/g) quoted in EGP | 5,220.54 | 5,207.93 | ↑ %0.24 |
| Local Gold (LE/g) (24k) | 5,218 | 5,152 | ↑ %1.26 |
| Premium/Discount* | ↓ %0.048 | ↓ %1.08 |
Difference between the local and international traded price of gold
Weekly Change of Other Key Precious Metals Prices
| ($/OZ) | Start | Close | Weekly Change |
|---|---|---|---|
| Silver | 37.73 | 37.08 | ↓ %1.72 |
| Platinum | 1,361 | 1,315 | ↓ %3.37 |
| Palladium | 1,139 | 1,111 | ↓ %2.45 |
Weekly Returns of Local Gold Compared to Alternative Asset Classes
| Start | Close | Weekly Change | |
|---|---|---|---|
| Local Gold (LE/g) (24k) | 5,218 | 5,152 | ↑ %1.26 |
| EGX 30 | 35,825 | 35,613 | ↑ %0.59 |
| 1 Year EGP T-Bill** (Yield) | 26.60 | 26.63 | ↓ %0.11 |
| Official Exchange Rate | 48.45 | 48.55 | 0.00% |
** Weighted average accepted bids of weekly one-year T-Bill
** When the yield on T-Bills increases the price of the security decreases, therefore the return is negative, and the opposite is true.
Global Update
Why Central Bank Buying Moves Gold Prices
Gold prices are influenced less by mine supply and more by who is buying. According to Goldman Sachs, central banks, ETFs, and speculators – called “conviction buyers” – drive around 70% of monthly price moves.
- Central banks play the biggest role, as their purchases are driven by financial and geopolitical motives rather than short-term rates.
- Goldman estimates that 100 tonnes of net purchases can lift gold prices by about 1.7%.
- Unlike other commodities, gold isn’t consumed, and mine supply is steady, so shifts in ownership have an outsized impact.
- Since the 2008 crisis and especially after Russia’s reserves were frozen in 2022, emerging-market central banks sharply increased buying to secure gold as a reserve asset.
- This demand has reset the link between interest rates and gold, often offsetting ETF outflows.
Key takeaway: Even modest changes in central bank buying can move gold prices significantly because new mine supply is limited and most privately held gold rarely returns to the market.
Local Update
Gold prices in Egypt remained stable on Saturday, August 21, in line with the global market holiday, after international gold ended the week higher on expectations of a U.S. Federal Reserve rate cut in September.
Local Prices (unchanged from Friday):
- 24k: EGP 5,152/g
- 21k: EGP 4,545/g
- 18k: EGP 3,896/g
- Gold Pound: EGP 36,360
Locally, gold shops apply small service charges on transactions, including a portion of making charges when selling and an average 2% fee when buying back gold, reflecting operating costs such as rent, utilities, and taxes. Like all markets, Egypt operates with two prices – buying and selling – with profits mainly realized when holding gold during upward trends.