Gold Surges to Record Highs, Breaching $3700 Amid Federal Reserve Policy Expectations
Cairo, Egypt – 2025/09/22 – Gold prices reached a new historical peak today, propelled by market anticipation of continued interest rate reductions by the U.S. Federal Reserve. Spot transactions registered $3720 per ounce, surpassing the psychological barrier of $3700 after a brief corrective phase last week. This surge is simultaneously bolstering the local Egyptian gold market, with prices climbing to a record 40120 Egyptian pounds per ounce.
The rally reflects investor sentiment surrounding potential shifts in U.S. monetary policy, which typically drives demand for the safe-haven asset. Lower interest rates diminish the opportunity cost of holding non-yielding gold, increasing its appeal. The upward trend is further supported by a strengthening Egyptian exchange rate. This price escalation impacts investors, jewelers, and the broader Egyptian economy, perhaps influencing inflation and consumer spending.
Local gold prices are experiencing meaningful support from the global market’s performance, building on positive momentum from the previous week. The recent breakthrough above $3700 follows a period of consolidation and a positive weekly close, signaling continued bullish sentiment. Analysts predict sustained interest in gold provided that expectations of Federal Reserve easing persist.
