Why are gold prices in Egypt falling while rising globally?

The ounce is trading above $4,500 worldwide.
While Egyptian demand for gold jewelry has decreased by 19% compared to last year.

How is this happening at the same time?

The answer in one sentence:
The gram has reached levels that the average citizen's pocket cannot bear.

24-karat gold failed to surpass 7,000 Egyptian pounds and entered a range of sideways fluctuation.
And the Egyptian consumer, on the other hand, did not wait.
They simply decided to stop buying.

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But here is the most important detail:
The Egyptian investor has not moved away from the idea of hedging.
They have changed their tool.

Instead of gold, they turned to the dollar.

The market clearly observes this:
Demand for the US dollar as a safe haven has increased,
while demand for the yellow metal has declined.

And this reveals an important aspect of the Egyptian market's nature:
People here seek protection more than showiness.
So if gold becomes out of reach, they turn to an alternative they believe is closer and more liquid.

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And why haven't local gold prices fallen despite the global ounce dropping by 1.8% from its peak?

Because the pound is on the other side of the equation.
The rise of the dollar locally increases the cost of pricing gold in pounds,
thus canceling out the effect of the global decline.

The price appears stable, but in reality, it is trapped between two opposing forces.

Another shift worth noting:
Demand for gold bars and coins has increased by 22% compared to last year,
despite a 23% decrease compared to the previous quarter.

This means:
Those remaining in the gold market have shifted from jewelry buyers to investors in bars.

Consumption has decreased, and investment awareness has advanced.

The full picture indicates:
Globally, gold is recording historic numbers,
because institutions and central banks are buying it strongly.

As for the Egyptian citizen, they face expensive gold, a fragile pound, and diminishing purchasing power.
They choose to stay on the sidelines or hedge with dollars.

This is not an individual decision.
It is an honest reflection of an economy trying to find its balance.