3.6% reduction in the price of gold during the week

Ihab Wasif, head of the Gold and Precious Metals Division at the Egyptian Industries Association, said that the drop in gold prices in the local market last week is part of a normal correction movement after the historic highs recorded by the precious metal last October, confirming that the market is still moving in a safe range, reflecting the balance of supply and demand.

Asif explained, in today’s statement, that local gold fell by 3.6% during the last week, reaching an average of 5,350 pounds for the month of January 21, compared to 5,550 pounds at the beginning of the week, down 200 pounds, after touching its lowest level at 5,235 pounds.

He added that this decrease is the result of the continuation of the negative correction in the global price of gold for the second week in a row, at the same time as the gradual decline in the price of the dollar in front of the Egyptian pound inside the banking system.

The head of the department pointed out that international gold prices closed last week above the level of 4000 dollars per ounce, despite their decline for the second week, which does not increase the chances of prices returning to higher levels during the next period, especially with the stabilization of oil indicators at moderate levels.

In this connection, he referred to the data of the World Gold Council, which showed a decrease in Egyptian gold buyers during the third quarter of 2025 to 9.9 tons, a decrease of 14% compared to the second quarter, and 5% compared to the same period of the previous year.

He pointed out that this decline does not reflect the weakness of demand as much as it expresses the situation of competition in the market as a result of the price fluctuation during the last period.

He explained that the Middle East region as a whole saw a decline in sales of gold products, affected by high prices and the geopolitical situation that reduced consumer confidence, not to mention that some consumers turned to reselling old products to take advantage of the high prices.

He emphasized that the Egyptian market is characterized by flexibility and the ability to absorb global fluctuations, and it is expected that gold prices will stabilize in the short term, with the possibility of a return to the upward trend if the ounce does not maintain its levels above the 4,000 dollar barrier globally.

He pointed out that the level of 5300 pounds for local grams is a strong support zone, and it is planned to test the levels of 5400 pounds again during the next period, with the continuation of the upward trend in the international market.