Analysts: If the Federal Reserve confirms multiple interest rate cuts, gold prices may peak again
2025-09-16 16:07:47
Gold prices surged above $3,700 an ounce to a record high on Tuesday, driven by a weaker dollar and clear expectations that the Federal Reserve would cut interest rates. "If the Fed's policy guidance fails to meet market expectations for a dovish stance, gold could face selling pressure in the short term," said Eric Chia, strategist at brokerage Exness. "But as long as the Fed confirms that it will make multiple interest rate cuts, it will provide support for the rally in gold prices, which is expected to drive it to another record high." In addition, continued gold purchases by central banks, inflows of gold ETF (exchange traded fund) funds, and geopolitical tensions have increased demand for safe-haven and inflation-resistant assets. These factors also combined to support the rise in gold prices.
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