Gold prices rose on Tuesday, October 14, 2025, in Egypt and worldwide to unprecedented levels after the ounce surpassed $4100 globally for the first time in history, amid rising fears of a renewed trade war between the United States and China.

In the local market, the price of the 21-carat gold gram – the most traded in Egypt – rose to 5510 Egyptian pounds for the first time, while 24-carat gold was about 6297 pounds, and 18-carat around 4722 pounds. Meanwhile, the price of the gold pound jumped to 44,080 pounds.

This record increase came after US President Donald Trump threatened to impose a 100% tariff on Chinese goods, along with new export restrictions on vital computer programs starting next November, a move that heightened tensions between the world’s two largest economies.

In response, China confirmed it “will not back down” and will take necessary measures to protect its interests, pushing investors toward safe havens, primarily gold, leading to new historic price jumps.

Despite Trump’s later attempts to calm markets by stating Washington “does not plan an immediate escalation,” traders remained cautious and watchful, especially given the volatile nature of US policies.

Analysts believe the rise in gold since early 2025 is due to increasing geopolitical risks, expanding central bank purchases, investment fund inflows, and strong expectations of interest rate cuts by the US Federal Reserve.

Expectations indicate the Fed will cut interest rates by 25 basis points in October, with a possible additional cut in December, amid efforts to support the US economy amid rising global uncertainty.

Jerome Powell, Chairman of the US Federal Reserve, is expected to deliver an important speech this evening before the National Association for Business Economics, with markets closely watching for guidance on upcoming monetary policy.