Gold Prices Soar to Record Highs Amid Fed Rate Cut Speculation

(Bengaluru, India) Gold prices hit a fresh record high on September 22, 2025, driven by investor expectations of potential interest rate cuts from the Federal Reserve. Spot gold increased 1.1% to $3,723.81 per ounce, reaching an earlier peak of $3,726.19 during the session. U.S. gold futures for December delivery also rose 1.4% to $3,758.40.

UBS analyst Giovanni Staunovo noted, “I would expect gold to reach new record highs this week with Fed officials likely to indicate further rate cuts, but also being data dependent on the pace and magnitude of cuts.” The market’s focus is on several Federal Reserve officials slated to speak this week, particularly Chair Jerome Powell, who is set to address investors on Tuesday.

Investors are eagerly awaiting the release of U.S. core personal consumption expenditure data on Friday, which may hint at future monetary policies. Recently, the Fed cut rates by 25 basis points and expressed openness to additional easing, raising expectations for two more cuts by the end of the year, according to market predictions.

Staunovo explained, “There is a shift in the factors supporting gold. So far it was central banks and Asian demand, now we are also starting to see Western investors looking to add gold, driven by expectations of falling U.S. rates.” Since the beginning of 2025, gold has gained more than 40%, propelled by geopolitical uncertainty and central bank buying.

Spot silver rose 1.4% to $43.67 per ounce, marking a 14-year high, while platinum and palladium also saw rises of 0.8% and 1.9%, reaching prices of $1,415.09 and $1,170.63 respectively. Staunovo anticipates further gains, stating that gold could hit $3,900 by mid-2026.