The gold price in Egypt remained stable on Sunday, October 12, 2025, coinciding with the jewelers’ holiday, following a significant surge 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.

Trump’s statements caused a collapse in US stock indices before the weekly close; the S&P 500 index dropped by 2.7%, and the Nasdaq technology stocks index fell by 3.6%.

The renewed escalation of the trade war between the US and China is expected to weaken the US dollar, which fell by 0.6% yesterday, benefiting gold due to their inverse relationship. Additionally, demand for gold as a safe haven increased amid concerns about 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. These events collectively support gold’s strong upward momentum, helping it reach new historic levels.

Furthermore, 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 considering the rapid rise in gold prices in recent weeks. However, over the next two years, gold prices are likely to rise sharply.