Arab Finance: Gold prices in Egypt fell on Monday, September 28, as global bullion prices dropped more than 2% amid rising oil prices and concerns over inflation, reinforcing expectations of further US Federal Reserve interest-rate hikes.
The 24-karat price hit EGP 6,960 for purchase and EGP 6,882.74 for sale, according to Dahab Masr by 10:07 am Cairo time.
Meanwhile, the 21-karat gold reached EGP 6,091 for buying and EGP 6,023 for selling.
The 18-karat gold recorded EGP 5,220.86 for buying and EGP 5,162.57 for selling.
A gold coin was priced at EGP 48,728 for purchase and EGP 48,184 for sale.
The decline followed a broad-based drop in gold prices on Sunday, September 27.
Globally, spot gold fell 2.7% to $4,171.85 per ounce as of 06:27 GMT on Monday, its lowest level since early August. US gold futures also declined 2.7% to $4,204.30 per ounce.
Higher oil prices can add to inflationary pressures by increasing costs across the economy, potentially limiting expectations for monetary easing. Meanwhile, elevated bond yields increase the opportunity cost of holding gold, which does not generate interest income.
The Federal Reserve hiked rates by 25 basis points earlier this month to a range of 3.75%-4%, citing elevated inflation.
