Gold hits record high on bets of US rate cuts
Tue Sep 23 2025
Gold prices steadied on Tuesday after reaching a record high, underpinned by expectations of more US rate cuts and a weaker dollar, as investors awaited Federal Reserve chair Jerome Powell’s speech for further policy cues.
Spot gold held its ground at $3,744.68/oz as of 4.12am GMT, after hitting a record high of $3,759.02/oz earlier in the session.
US gold futures for December delivery rose 0.1% to $3,779.40/oz.
The US dollar index extended its losses from the previous session, making greenback-priced gold cheaper for overseas buyers.
“I think it’s predominantly a factor of monetary policy expectations, potentially lower interest rates and upside risks to inflation,” said Capital.com analyst Kyle Rodda.
“The short-term trend is still bullish intact, but on an intraday basis, we do expect a short-term pullback more due to technical factors,” Oanda senior market analyst Kelvin Wong said.
Investors are closely awaiting Powell’s speech, due at 4.35pm GMT, for signals about the central bank’s policy. The US Personal Consumption Expenditures index, Fed’s preferred inflation gauge, is due on Friday.
New Federal Reserve governor Stephen Miran said on Monday that the Fed was misreading how tight it had set monetary policy and would put the job market at risk without aggressive rate cuts, a view countered in remarks by three of his colleagues who felt the central bank needed to remain cautious about inflation.
According to the CME FedWatch tool, investors see a 90% probability of a 25-basis-point rate cut in October and a 75% chance of another one in December.
“We see slowing economic growth, higher inflation, the shifting geopolitical landscape and a weaker dollar keeping gold’s investment demand strong,” ANZ said in a note.
Spot silver fell 0.5% to $43.84/oz, hovering near a 14-year high. Platinum was down 0.2% to $1,413.80/oz and palladium inched lower 0.5% to $1,173.18/oz.