Baher Abdel Aziz: Gold Remains a Key Hedge Against Global Market Volatility

Gold prices in the Egyptian market witnessed notable movements during Thursday’s trading, August 13, 2026, as global markets continued to monitor developments in precious metals, US monetary policy expectations, the dollar’s performance and geopolitical risks.

The price of 21-karat gold stood at EGP 6,290 per gram for selling and EGP 6,240 for buying, while 24-karat gold reached EGP 7,188.57 for selling and EGP 7,131.43 for buying, according to the latest indicative market prices. The announced prices do not include workmanship fees.

Meanwhile, 18-karat gold recorded EGP 5,391.43 per gram for selling and EGP 5,348.57 for buying, while 14-karat gold stood at EGP 4,193.33 for selling and EGP 4,160 for buying.

The price of a gold pound reached around EGP 50,320, while the ounce stood at approximately EGP 223,565, and the price of one kilogram of gold reached around EGP 7,188,571, according to the indicative market prices, excluding workmanship fees.

Against this backdrop, Baher Abdel Aziz, economist, said gold continues to maintain its appeal as a hedging instrument amid the uncertainty affecting global markets, noting that the precious metal’s price movements are mainly driven by expectations for interest rates, the strength of the US dollar, and geopolitical and economic risks.

Abdel Aziz explained that expectations surrounding US monetary policy remain among the key drivers of the gold market. Lower interest rates, or a decline in expectations for rate hikes, reduce the opportunity cost of holding gold, as the precious metal does not generate periodic income.

He added that a weaker US dollar represents another supportive factor for gold prices, as it makes the precious metal less expensive for holders of other currencies, potentially boosting global demand.

The economist pointed out that movements in global gold prices are reflected in the Egyptian market, but local prices are not determined by international gold prices alone. They are also influenced by the exchange rate of the Egyptian pound against the US dollar, domestic demand, trading costs and market margins.

Abdel Aziz stressed that gold can serve as a hedge against inflation and market volatility, while emphasizing that it is not a risk-free investment. Gold prices may experience corrections if investor expectations regarding US interest rates change or if the dollar strengthens.

He added that gold prices could continue to experience volatility in the coming period, particularly as markets await upcoming US economic data and Federal Reserve decisions, alongside developments on the geopolitical front.

The economist also noted that investors should view gold as part of a diversified investment portfolio, rather than solely as a tool for short-term speculation. He explained that decisions regarding the timing of buying or selling require careful assessment of price movements and the economic factors affecting the precious metal.

Abdel Aziz concluded that continued global demand for gold, expectations surrounding US monetary policy and geopolitical tensions will remain among the key factors determining the metal’s price direction in the coming period, while exchange-rate movements and domestic demand will continue to play a central role in determining gold prices in the Egyptian market.