Egyptian pound strengthens, gold prices fall 2.7% in May

“Gold prices in Egypt fell sharply in May 2026, weighed down by a stronger Egyptian pound and weaker global bullion markets, according to the Gold and Precious Metals Division at the Federation of Egyptian Industries. Division Chairperson Ehab Wassef explained that the local market faced a dual squeeze: international gold prices dropped by more than 2 percent, while the pound’s appreciation against the US dollar amplified declines at home. Global sentiment toward gold remained cautious, with investors pulling back from safe-haven assets. Data showed withdrawals of $1.1bn from Gold ETFs, equal to 8.7 tonnes of gold, in the week ending May 22. In Egypt, the price of 21-karat gold, the country’s most widely traded product, opened May at EGP 6,950 per gram and closed at EGP 6,765, a decline of EGP 185 per gram or 2.7 percent. International markets mirrored this trend, with the ounce sliding from $4,630 to $4,539, a loss of $91 or nearly 2 percent. The pound’s strength added further pressure. The exchange rate fell from EGP 53.57 per dollar at the start of May to EGP 52.23 by month-end, a gain of 2.5 percent. Wassef noted that improved foreign currency inflows and rising confidence in the pound contributed directly to the drop in local gold prices. He added that easing geopolitical tensions and reduced demand for safe-haven assets also weighed on global markets, prompting investors to shift toward equities and higher-yielding assets. The division emphasized that Egypt’s gold market will continue to be driven by three key forces: international gold prices, movements in the dollar–pound exchange rate, and local supply-and-demand dynamics. Volatility is expected to persist as investors closely monitor US monetary policy decisions and global dollar movements, both of which will play a significant role in shaping future price trends. The post Egyptian pound strengthens, gold prices fall 2.7% in May first appeared on Dailynewsegypt .

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