The price of gold in Egypt stabilized today, Sunday, October 12, following the significant surge the precious metal experienced in previous sessions driven by rising global prices.

Global gold prices rose again after US President Donald Trump announced on Friday that there was no reason to meet Chinese President Xi Jinping in South Korea in two weeks as planned.

These statements by Trump caused a collapse in US stock indices before the weekly close, with the S&P 500 closing down 2.7% and the Nasdaq technology stock index falling 3.6%.

The renewed escalation of the trade war between the US and China is expected to weaken the US dollar, which dropped 0.6% yesterday, benefiting gold which has an inverse relationship with the dollar. Additionally, demand for gold as a safe haven is increasing due to fears of the negative effects of the trade war on price levels and growth rates.

Markets are also closely monitoring risks related to the potential collapse of the French government, geopolitical tensions in Japan, and the ongoing US government shutdown. All these events support gold’s strong upward momentum and the potential to reach new historic levels.

Moreover, investors expect the US Federal Reserve to cut interest rates by 25 basis points in both October and December, following its first rate cut decision this year in December.

Overall, there remain short-term risks of price declines given the rapid rise in gold prices in recent weeks. However, over the next two years, gold prices are likely to rise sharply.