Gold Surges to Record Highs, Breaching $3700 Amid Federal Reserve Policy Expectations
Cairo, Egypt – 2025/09/22 – Gold prices reached a new historicalโ peak today,โข propelled by market anticipationโ of continued interest rate reductions by the U.S. Federal Reserve. Spot transactions registered $3720 per โขounce, surpassing the โpsychologicalโ barrier โof $3700 โฃafter a briefโ 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-havenโข asset. Lower interest rates โขdiminish the opportunity cost of holding non-yielding gold, increasing its appeal. โThe upward trend โis further supportedโ by a strengthening Egyptian exchange rate. This price escalation impacts investors, jewelers, and the broader Egyptian โฃeconomy,โ perhaps influencing inflation and โconsumer 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 โคof consolidationโฃ and a positiveโฃ weekly close, signaling continuedโ bullish sentiment. Analysts predict sustained interest in gold provided thatโข expectations of Federal Reserveโ easing persist.