Gold prices in Egypt remained stable today, Sunday, October 12, 2025, due to jewelers’ holiday, following a significant surge in previous sessions driven by rising global prices.

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

Trump’s statements caused a collapse in U.S. stock indices before the weekly trading close, with the S&P 500 dropping by 2.7% and the Nasdaq technology stocks index falling by 3.6%.

The renewed escalation of the trade war between the U.S. and China is expected to weaken the U.S. dollar, which fell by 0.6% yesterday. This benefits gold, which has an inverse relationship with the dollar, in addition to increased demand for gold as a safe haven amid concerns over the negative impacts 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 U.S. government shutdown. All these events support gold’s strong upward momentum and the possibility of reaching new historic levels.

Additionally, investors expect the U.S. 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 remains a chance of short-term 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.