Gold hit a historic USD 4.5K per oz last Friday before a sharp 4.5% correction yesterday, triggered by profit taking and what seemed to be reasonable Trump-Zelensky peace talks. While global traders are selling, many Egyptian households are treating the dip as a secondary entry point, industry insiders tell EnterpriseAM, suggesting gold remains a structural hedge within the Egyptian family’s balance sheet.

Why it matters: Until the EGP can compete with the psychological security of bullion, capital will remain sidelined in the non-productive economy. As Bokra Holding CEO Ayman Elsawy told us, “gold demand in Egypt doesn’t collapse when conditions improve; it slows down. Past volatility keeps gold in portfolios longer than the models expect.”

For most Egyptians, gold is no longer just an asset — it is a replacement for currency trust

“Even if inflation slows, people remember what high inflation did to [paper money],” Elsawy said. “Gold buying today is often backward-looking, based on people’s memory,” he added, explaining that this “inflation memory” is currently more powerful than global price charts. Rising prices are interpreted as a sign of instability ahead, not a reason to wait, Elsawy added.

In the shops, the buy-and-hold mentality is the baseline. Customers aren’t looking at the ticker tape for quick gains, Hatem El Gabry, CEO of gold and silver shop Tut Ankh Amon Jewellery, tells EnterpriseAM. “Buyers are still entering the market, fully aware that gold is a long-term investment and that returns take time,” El Gabry said. “Many see it as a way to preserve value for future purchases rather than a short-term trade.”

This is echoed by the savers themselves. “Inflation is the main reason. Even when prices stabilize for a bit, the cost of living keeps rising, so gold feels like a way to protect what I’ve already saved,” one saver tells us. Another said that any whisper of currency volatility is a buy signal, explaining how “any talk about pressure on the EGP immediately makes me think about protecting my savings.”

Demand in Egypt is rarely killed by high prices — it’s just reshaped

Egypt has a buy-and-hold culture that transcends price swings, with households typically buying gold whether prices are rising or falling, but the motivation changes, Evolve Investment Holding CEO Sameh El Torgoman tells EnterpriseAM. “When prices rise due to inflation fears or FX stress, people rush into gold even as prices go up. The mindset is: ‘Better to move my money now before it loses value.’” Conversely, when prices rise without that domestic pressure, “demand tends to cool slightly as many buyers prefer to wait.”

The recent dip is likely to bring the “informed buyers” back to the table. “Small dips rarely trigger panic selling,” Elsawy added. “Demand doesn’t disappear; it shifts to experienced buyers and traders. Households hesitate to sell unless the drop feels meaningful.”

Egyptians have always flocked to gold, and that’s not great news for the economy

While gold protects the individual, it presents a challenge for the wider economy. “The rising trend of purchasing and storing gold protects household savings, but it does not contribute to economic growth,” Elsawy said. “When a significant share of capital is held in gold, that money becomes passive — preserved rather than circulated — which limits its ability to finance business activity, job creation, or capacity expansion.”

So where’s gold heading in 2026? A Goldman Sachs poll of institutional investors sees the metal hitting USD 5k in the New Year.

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