Cairo – May 1, 2024: Demand for jewelry and bullion in Egypt experienced a significant decline of 17 percent during the first quarter of 2024, falling to 13.2 tons from the 15.8 tons recorded in Q1 2023, but remains an improvement over the 11.5 tons observed in Q4 2023, according to data from the World Gold Council (WGC).
Despite an increase in gold jewelry demand, with Egyptians purchasing 8 tons in Q1 2024, representing a 3 percent increase compared to the 7.7 tons bought in Q1 2023, the demand for gold bullion and coins saw a significant decrease.
Bullion purchases totaled 5.2 tons in Q1 2024, marking a 36 percent decline from the 8.1 tons recorded in the same period of 2023.
Analysts attribute this reduced demand for bullion and coins to improved economic conditions, including currency stabilization, the elimination of the black market, and reduced speculation in gold.
The World Gold Council’s report also highlighted a broader decline in jewelry demand across the Middle East region, with purchases decreasing by 4 percent year-on-year to 42 tons in Q1.
This decline was driven by weak demand in the UAE (-10 percent) and Saudi Arabia (-12 percent), although Egypt saw a slight increase (+3 percent). The report attributed the weaker demand in the UAE and Saudi Arabia to the high gold prices prevailing in those markets.
Since the March 6 devaluation, the Egyptian pound has been subject to fluctuations in the local market, experiencing a significant depreciation of over 60 percent depreciation against the USD.
Locally, the price of gold in Egypt reached a record level in 2024, nearing LE 120,000 per ounce, the highest since 2015.
Gold jewelry and bullion remain popular safe-haven assets for Egyptians seeking to hedge against economic uncertainties.
On a global scale, gold prices reached their highest level since the beginning of 2024, approaching $2400 per ounce, according to the latest trading price on May 1st. This price surge represents the highest level in a decade.
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