Egyptians purchased10.4 tonnes of bullion in the third quarter (Q3) of 2024, down from 12.6 tonnes in the same period in 2023, marking a 17 per cent year-on-year decline, according to World Gold Council (WGC) data.
According to WGC data, Egyptians’ quarterly gold purchases plunged 38.5 per cent, down from 14.4 tonnes in 2024 Q2.
“A surprise jump in inflation in Egypt, along with fears of wider regional conflict, undermined consumer sentiment and, in turn, gold jewelry demand, which reached its lowest levels since 2020 Q2,” WGC said in a report, a copy of which was made available to The Egyptian Gazette.
Gold jewelry purchases fell by 19 per cent, year-on-year, to 5.1 tons in 2024 Q3, down from 6.3 tonnes in the same quarter a year earlier, according to the WGC report.
Globally, jewelry purchases fell to 459tonnes in 2024 Q3 as the gold price reached a series of successive new highs, imposing affordability constraints on consumers.
“India was a notable outlier as the sharp cut in gold import duties offset much of the price rise and consumers seized the opportunity to buy at lower prices,” the WGC report read.
Gold prices edge higher
Gold prices ticked up on Friday and headed for a slight weekly gain, while investors braced for the US payrolls data that could provide further clues about the Federal Reserve’s interest rate outlook.
Spot gold rose 0.4% to $2,753.75 per ounce, and up 0.2% for the week so far. Prices ended lower on Thursday after hitting a record high of $2,790.15. US gold futures rose 0.5% to $2,763.60.
“Investors are still in the mindset of buying the dips and that strategy is still going to hold through the (US) election, and maybe after that because there is going to be a lot of turmoil,” said Marex analyst Edward Meir.
Gold prices gained more than 4% in October amid safe-haven flows spurred by the Middle East tensions and U.S. election uncertainty.
Market focus is now on the US nonfarm payrolls report, due at 12:30 GMT, for clues about the health of the world’s largest economy.
Traders see a 95% chance of a 25-basis-point Fed rate cut next week.
“With no signs of recession and inflation declining, the economy looks positive… the key now is how quickly the Fed will lower rates,” Meir said.
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