Gold prices in Egypt and worldwide witnessed a historic surge during Tuesday’s trading, as the global ounce price surpassed $4100 for the first time in history, driven by a strong wave of demand for safe havens amid escalating trade tensions between the United States and China.

In the local market, gold continued to register new record levels, with the 21-carat gold — the most traded in Egypt — reaching 5510 Egyptian pounds per gram, while 24-carat gold was about 6297 pounds, 18-carat gold was around 4722 pounds, and the price of the gold pound reached 44,080 pounds.

This sharp increase came after statements by US President Donald Trump last Friday, in which he threatened to impose a 100% tariff on Chinese imported goods to the United States, along with new export controls on vital computer programs starting November 1, in a move described as a new escalation in the trade war.

Beijing quickly responded to these statements, affirming that it “does not fear a trade war” and will take “necessary measures to protect its interests,” which heightened market fears and pushed investors toward gold as a safe haven.

In an attempt to calm the markets, Trump softened his tone over the weekend, urging investors “not to worry about China,” and indicating that Washington does not plan an immediate escalation, but caution still dominates traders amid the volatile US policy.

Market analyses indicate that the rise in gold since the beginning of the year is driven by several factors, most notably geopolitical tensions, increased central bank purchases of the precious metal, investment fund inflows, and expectations of interest rate cuts by the US Federal Reserve.

Markets expect the Federal Reserve to cut interest rates by 25 basis points in October, with a possible similar cut in December, in an effort to support the economy amid rising global uncertainty.

Jerome Powell, Chairman of the Federal Reserve, is expected to deliver an important speech during the annual meeting of the National Association for Business Economics today Tuesday, amid wide investor anticipation for any indications regarding the monetary policy path in the coming period.