Gold Continues Nine-Week Rally, Hits All-Time High

US-China Trade Tensions and US Government Shutdown Boost Safe-Haven Demand

Gold prices in local and international markets extended their record-breaking rally for the ninth consecutive week, reaching unprecedented levels during trading on Monday. This surge is driven by escalating US-China trade tensions and continued global political and economic uncertainty, according to a report from the iSagha platform, which specializes in gold and jewelry trading.

Saeed Imbabi, the platform's Executive Director, stated that local gold prices rose by approximately EGP 80 during Monday's trading compared to the close of last Saturday's trading week. The price of 21-karat gold recorded EGP 5,480 per gram, while the global ounce price climbed by $68 to reach $4,085.

Imbabi noted that 24-karat gold registered EGP 6,263, 18-karat gold reached EGP 4,697, and 14-karat gold was approximately EGP 3,654. The price of the gold pound remained stable at EGP 43,840.

Historic Weekly Gains

Local market gold prices had risen by approximately EGP 180 over the past week. 21-karat gold opened the week at EGP 5,220, touched an all-time high of EGP 5,450, and closed the week at EGP 5,400. Globally, the ounce price increased by $131, starting the week at $3,886, reaching a high of $4,060, and closing at $4,017 per ounce.

Monday's trading marked a new historical level of $4,085 per ounce for gold, continuing its gains for the ninth consecutive week, fueled by increasing safe-haven demand amidst growing concerns over the US-China trade dispute.

Trade Tensions and a Volatile Political Scene

Global markets saw a state of confusion after US President Donald Trump announced his intention to impose a 100% tariff on all Chinese imports starting November 1, in response to Beijing's new restrictions on the export of rare-earth elements.

This move raised fears of global supply chain disruption and revived the atmosphere of a trade war between the world's two largest economies. Despite attempts at de-escalation over the weekend, caution remains prevalent in the markets, leading investors to flock to gold as a store of value amid rising tensions.

US Government Shutdown Aggravates Concerns

Further complicating the picture is the continuation of the US government shutdown for the third consecutive week, which has led to the furloughing of federal employees and the suspension of several important economic reports, including the Consumer Price Index (CPI), which was postponed until October 24.

In the absence of new economic indicators, market attention is focused on tomorrow's speech by Federal Reserve Chairman Jerome Powell, who is expected to outline the future direction of monetary policy amid expectations of two additional interest rate cuts this year.

Investment Demand Continues to Support Prices

Data from the World Gold Council indicates that the recent price increase reflects a strong wave of investment demand, driven by a surge in purchases by Gold-Backed Exchange Traded Funds (ETFs). These funds have recorded inflows exceeding $67 billion since the beginning of the year, with their global holdings rising to 3,857 tonnes, just 2% shy of their historical peak recorded in November 2020.

The Council suggests that the current upward trend has not yet lost momentum, citing the continued weakness of the US dollar, the decline in real US bond yields, increasing stock market volatility, and ongoing purchases by central banks worldwide.

Gold Writes a New Chapter in its History

The World Gold Council concludes its analysis by asserting that the events of October 2025 are not a market peak, but a new phase of re-pricing the yellow metal in light of global economic shifts.

In a world where confidence in fiat currencies is waning and geopolitical risks are expanding, gold seems to be continuing its historical role as the "ultimate safe haven" that balances the storm with history.