(MENAFN- Daily News Egypt) Domestic gold prices in Egypt extended their upward trajectory for the eighth consecutive week, buoyed by a historic surge in global gold prices, which surpassed the $4,000 per ounce mark for the first time, according to Ehab Wassef, Chairperson of the Gold and Precious Metals Division at the Federation of Egyptian Industries.

Wassef confirmed that this unprecedented global rally has had a direct and significant impact on Egypt's gold market, overriding the downward pressure typically associated with a strengthening Egyptian pound.

According to the division's weekly report, 21-karat gold in Egypt hit an all-time high of EGP 5,460 per gram during the past week-up 2.39% from EGP 5,230 at the week's open, before closing at EGP 5,355 per gram. Wassef described this as a reflection of the continued positive momentum in the market, driven more by international than domestic factors.

“Despite the appreciation of the Egyptian pound against the U.S. dollar, the primary driver of domestic price movements during this period has been the global surge in gold prices,” Wassef stated, noting a shift from previous patterns where exchange rate fluctuations played a larger role.

He attributed the reduced local demand for gold as a store of value to improving economic indicators, including a rise in Egypt's foreign currency reserves to $49.534bn in September. He also cited the recent credit rating upgrades by S&P and Fitch as signs of restored market confidence and enhanced financial stability.

However, Wassef stressed that international demand for gold as a safe-haven asset-particularly amid ongoing geopolitical tensions and expectations of U.S. interest rate cuts-remains the dominant factor influencing local prices.

“Even as the local dollar weakens, the global surge in gold has pushed domestic prices to unprecedented levels, illustrating the strong correlation between local and global markets,” he said.

While noting that the week's close below EGP 5,400 per gram might appear as a dip, Wassef clarified it should be viewed as a natural correction following consistent gains.“The market may need additional momentum-possibly from another global price movement-to resume its upward trend next week,” he added.

Wassef concluded that the overall outlook for gold remains bullish in the short term, supported by safe-haven demand, geopolitical instability, and global monetary policy trends, all of which continue to underpin high price levels.

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