September 23, 2025

Watch out! Gold is not backing down. This week, gold prices stayed strong near record highs, keeping investors on the edge of their seats. Why? Everyone is waiting for important US inflation data and what Federal Reserve officials will say next. On Monday, spot gold crept up slightly by 0.1% to $3,689.08 per ounce, just shy of the record high $3,707.40 hit recently. The December US gold futures also jumped 0.5% to $3,724.50. What’s fuelling this buzz? All eyes are on the US core Personal Consumption Expenditure (PCE) price index – the Federal Reserve’s favourite inflation gauge – coming out on Friday. Last week, the Fed cut interest rates by 25 basis points. They hinted more easing might be coming, but inflation is still stubborn. This week is packed with at least a dozen Fed officials ready to speak, including Chair Jerome Powell on Tuesday. A new twist came recently when Fed Governor Stephen Miran spoke up. After opposing big rate cuts last meeting and then defending his independence this Friday, he said, "I hope to convince my fellow policymakers to support larger cuts in future meetings." Investors seem to agree with some easing ahead, expecting two more rate cuts this year – 25 basis points each in October and December – with super high chances of 93% and 81%, according to CME FedWatch. What a year it has been for gold! Bullion prices climbed over 40% in 2024 thanks to global uncertainty, central banks snapping up gold, and easier monetary policy. Remember, gold doesn’t give interest but shines bright as a safe haven when rates are low. Not just gold, the biggest gold-backed exchange-traded fund, SPDR Gold Trust, is also piling up. Its holdings rose nearly 2% in a day to 994.56 metric tons. Meanwhile, silver is twinkling near a 14-year high at $43.12 per ounce. Platinum dipped a little, and palladium rose slightly. This week also brings other big updates like China’s loan prime rates and Europe’s consumer confidence data. But it’s gold and the Fed that have grabbed the spotlight, keeping investors tightly tuned in to every hint and data point. Will the golden streak continue? Investors are all eyes and ears!

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Tags: Gold prices, Federal reserve, Inflation data, Monetary policy, Rate cuts, Spdr gold trust,