Gold purchases in Egypt dropped by 16% in the first quarter of 2025 compared with the same period last year, according to a report by the World Gold Council published Wednesday.
Egyptians have bought 11.1 metric tons of gold between January and March, down from 13.2 tons in the first quarter of 2024, according to goldbullion.
The fall reflects shrinking household budgets and surging prices, according to three gold traders who spoke to Al Manassa.
In April, the price of 21-karat gold, the most popular type sold in Egypt, jumped to historic levels, surpassing 5,000 Egyptian pounds (around $98) per gram, in a spike driven by local inflation and global pressures.
Globally, gold prices surged as a result of the U.S.-China trade war, with tarrifs reaching up to 245% on Chinese imports and 125% on American products.
"When the price of 21-karat gold hit 4,000 pounds (around $78), many people rushed to sell, thinking it had peaked," said Hany Milad, head of the Gold and Jewelry Division at the Federation of Egyptian Chambers of Commerce.
"This happened during Ramadan, when people were short on cash and prioritizing essentials," he added.
Since then, prices have eased slightly. As of Wednesday, 21-karat gold was trading at 4,730 pounds ($93) per gram, down 35 pounds ($0.69) from earlier in the day, according to the gold and jewelry trading platform iSagha.
Nady Naguib, former secretary-general of the Gold Division at the Cairo Chamber of Commerce, said he expects prices to hold steady for a short time before climbing again.
"Sales are sluggish right now. A lot of people are holding off, waiting for prices to drop further," Naguib told Al Manassa.
On his end, Lotfy Mounib, deputy head of the Gold Division, said price forecasts remain uncertain amid continued geopolitical tensions. "Gold prices are now being driven by the decisions of U.S. President Donald Trump," he said.
"The market is quiet. Consumers are cautious and waiting. There's talk of possible negotiations between the U.S. and China, which could bring prices down," Mounib added.
The Central Bank of Egypt had also cut its key overnight interest rates by 2.25% in mid-April, bringing the deposit rate to 25% and the lending rate to 26%.
