Gold Prices Rise for Fifth Consecutive Week Amid Federal Reserve Rate Cut
Gold Prices Rise for Fifth Consecutive Week Amid Federal Reserve Rate Cut
On Friday, September 19, 2025, gold prices advanced, marking the fifth consecutive weekly gain. This upward trend follows the U.S. Federal Reserve's recent decision to cut interest rates by 25 basis points and signal a gradual easing path for the remainder of the year.
Current Market Prices
| Metal | Price (USD) | Change (%) |
|---|---|---|
| Gold | $3,660.34 | +0.5% |
| Silver | $42.35 | +1.3% |
| Platinum | $1,387.62 | +0.3% |
| Palladium | $1,166.15 | +1.4% |
Source: Reuters
Macroeconomic Drivers
The Federal Reserve's rate cut, aimed at addressing a weakening labor market, has been a significant driver of the recent surge in gold prices. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making it more attractive to investors. However, the Fed's guidance was not as dovish as some had anticipated, leading to a slight strengthening of the U.S. dollar and an increase in yields, which tempered enthusiasm.
Technical Analysis
Spot gold is currently testing support at $3,630 per ounce. A break below this level could see prices fall into the range of $3,596 to $3,617. Investors should monitor these technical levels closely, as they may indicate potential shifts in market sentiment.
Investor Sentiment
Despite the recent gains, sentiment remains cautiously bullish. The Fed's projection of two more cuts this year was a positive signal; however, the forecast of only one cut in 2026 was above market expectations, leading to a more measured response from investors.
Multi-Currency Pricing
For our European audience, it's essential to consider the impact of currency fluctuations on precious metal prices. The recent strengthening of the U.S. dollar may influence the EUR/USD exchange rate, affecting the euro-denominated prices of gold and other precious metals. Investors should stay informed about currency movements to make well-informed decisions.
In summary, while gold continues its upward trajectory amid the Federal Reserve's rate cut, investors should remain vigilant, considering both macroeconomic indicators and technical signals to navigate the evolving market landscape.
