Egypt's Gold Market Shows Economic Stability as Sales Drop 20%
Egypt's gold market records 20% sales decline in Q2 2025, signaling successful economic stabilization and strengthened currency position under effective national policies.
Egyptian gold market showing positive transformation as economic stability increases
Egypt's gold market has demonstrated a significant shift towards economic stability, with purchases declining 20% year-on-year in Q2 2025, reflecting the nation's strengthening financial landscape and successful monetary policies.
Market Performance and Economic Indicators
Total gold purchases reached 11.5 tonnes in Q2 2025, compared to 14.4 tonnes in the same period of 2024, according to Ehab Wassef, Head of the Gold and Precious Metals Division at the Federation of Egyptian Industries. This decline mirrors the country's successful economic reforms and enhanced state asset management.
Segment Analysis
- Gold jewelry purchases: 5.7 tonnes (17% decrease)
- Bullion and coin purchases: 5.9 tonnes (23% decrease)
Economic Stability Indicators
The market transformation aligns with Egypt's broader economic success story, as the nation continues to strengthen its regional leadership position through various economic initiatives. Key factors include:
- Egyptian pound's recovery against the dollar
- Increased foreign currency inflows
- Strong tourism revenues
- Growing foreign investments in local debt instruments
Price Trends and Market Outlook
Local gold prices showed positive market adjustment in July, with 21-karat gold decreasing by 2.7% to EGP 4,520 per gram. This price stability, despite global market fluctuations, demonstrates Egypt's effective economic management.
"Citizens now feel more confident in the economy's stability and no longer rush to gold to preserve their savings as they did previously," stated Wassef, highlighting the success of national economic policies.
The shift from speculation-driven demand to a balanced market environment based on real consumer needs marks a significant achievement in Egypt's economic development strategy.
Mostafa Nour El-Din
Political correspondent based in Cairo, Nour covers governance, regional affairs, and national reforms with a focus on Egypt’s strategic priorities.