Gold prices in Egypt rose on Friday, August 29, 2025, reached EGP 4,650 (about $ 97.65) with 21-carat gold, marking a sharp reaction to reduce the recent decision of Egyptian Central Bank by 2%. This step is seen as a stimulation for the demand for gold, especially among local buyers.
Domestic gold prices have a new height
On Friday, Egypt saw a continuous increase in gold prices, which had been increasing profit from the previous day. The most widely trading 21-carat variety in the country climbed the EGP 4,650 ($ 97.65) per gram during the evening trade. Earlier in the day, it was recorded slightly less in EGP 4,640 ($ 97.44). The price of gold pounds (about 8 grams of 21-carat gold) increased to EGP 37,200 ($ 781.20), above the first EGP 37,120 ($ 779.58) a day. The upward movement came into succession close to the Central Bank of Egypt (CBE), which came in the decision to reduce interest rates by 200 basis points on Thursday, August 28, 2025, a development that usually makes more demand to demand more in non-business assets like gold. In global markets, a ounce of gold trading around $ 3,417.79 during the day. Meanwhile, gold futures for December delivery on Thursday increased by 0.5%or $ 17.5 to settle at $ 3,466.1, which shows support from a weak US dollar before the expected inflation figures yesterday. Below is the complete breakdown of domestic gold prices in Egypt by Friday:
| Gold type | Sale price (EGP) | Procurement price (EGP) | Sale price (USD) | Purchase Price (USD) |
|---|---|---|---|---|
| 24-carat | 5,314.25 | 5,285.75 | $ 111.60 | $ 111.00 |
| 22 carat | 4,871.5 | 4,845.25 | $ 102.30 | $ 101.75 |
| 21-Kart | 4,650 | 4,625 | $ 97.65 | $ 97.13 |
| 18 carat | 3,985.75 | 3,964.25 | $ 83.70 | $ 83.25 |
| 14 carat | 3,100 | 3,083.25 | $ 65.10 | $ 64.75 |
| Gold pound | 37,200 | 37,000 | $ 781.20 | $ 777.00 |
,Currency Conversion: 1 EGP = $ 0.021,
Interest rate cut signal policy innings
On Thursday, August 28, 2025, the Egyptian Central Bank implemented an important monetary policy adjustment, which cut major interest rates of 200 basis points. The overnight deposit rate is now 22%, borrowing rate 23%, and both the main operation and discount rate is 22.5%. This decision was taken during the Scheduled Meeting of Monetary Policy Committee and was attributed to many factors, including:
- Global and local inflation pressure decreases
- A better economic development approach
- External and fiscal risks reduced
Domestic, CBE cited signs of economic stabilization. The actual GDP growth for the financial year of 2024/2025 is estimated at 4.5%, which is a significant improvement at 2.4% recorded last year. Meanwhile, unemployment rate showed further recovery, Q2 of 2025 declined by 6.1%, Q1 below 6.3%. Interest rate cuts are expected to promote investment and consumer expenses, both of them are seen as a safe shelter and currency depreciation and inflation against inflation.
Global Backdrop: Fed holds, dollar weakens
CBE’s decision aligns with comprehensive global monetary policy trends. The US Federal Reserve recently opted to unchanged its benchmark interest rate at 4.25% -4.50% during its fifth policy meeting of 2025. The decision reflects a cautious stance by Fed Chair Zerome Powell despite the increasing pressure of US president Donald Trump, who has repeatedly requested to take office early this year. The Federal Reserve stop, combined with a weak dollar, supported gold prices internationally. Due to yesterday, with US inflation figures, global investors have taken a defensive status, increasing demand for precious metals.
Gold priorities in Egyptian market
Gold grip for buyers in Egypt is different -appeal:
- 18-Core gold remains a favorite among young consumers due to its strength and design variety.
- 21-Core Gold enjoys widespread demand in the market, balances price and quality.
- 24-Core gold is mainly purchased by investors and used in coins and bullion, which offers the highest purity and best long-term value.
