Gold prices in Egypt rose by 55 pounds on Monday, October 9, 2023, to reach 2,240 Egyptian pounds per gram of 21-karat gold. The rise came despite a stronger dollar, which is often seen as a safe haven in times of uncertainty.
The rise in gold prices was driven by geopolitical tensions, including the ongoing conflict on the occupied lands of Palestine. Investors are seeking safe havens in the face of the conflict, which has raised fears of a wider war in the region.
The rise in gold prices also comes amid a broader economic slowdown and rising inflation. Gold is often seen as a hedge against inflation, as its value tends to rise when prices for other goods and services are increasing.
In addition to geopolitical tensions and economic factors, the suspension of all international transactions by Egyptian banks using debit cards abroad is also likely to contribute to the rise in gold prices. The suspension is intended to prevent the depletion of foreign currency reserves, which are already under pressure.