Precious Metals Break Records: Gold and silver prices surged to unprecedented heights on September 23, 2025, driven by expectations of further U.S. interest rate cuts, persistent global tensions, and strategic moves by central banks worldwide. Both metals reached record levels as investors sought refuge from economic uncertainty and currency volatility.
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Record Highs Amid Federal Reserve Expectations
Gold futures on India’s Multi Commodity Exchange (MCX) climbed to an all-time high of ₹1,12,750 per 10 grams, while silver futures hit a lifetime peak of ₹1,34,016 per kilogram. Internationally, spot gold reached $3,790.82 per ounce before settling around $3,743.39, marking fresh records.
The rally was fueled by remarks from newly appointed Federal Reserve Governor Stephen Miran, who called for more aggressive interest rate cuts and warned that current policy could jeopardize the employment mandate. Markets are now pricing in a 90% probability of another rate cut in October, with traders expecting additional easing throughout 2025.
According to Ross Maxwell from VT Markets, “The deceleration of U.S. economic growth, enduring risks associated with inflation, robust demand from central banks, and projections of additional rate cuts later this year collectively bolster gold’s long-term prospects”.
Currency Weakness Amplifies Precious Metals Break Records
The Indian rupee’s dramatic decline to a record low of 88.67 against the dollar added significant pressure to domestic precious metals prices. President Donald Trump’s tariff policies on U.S. trading partners, including concerns over H1B visa rules, contributed to the rupee’s weakness and heightened demand for safe-haven assets.
Gold “breached the door of USD 3700 once again, while silver goes way past USD 43 on COMEX”. The currency depreciation particularly benefits domestic precious metals investors, as imports become more expensive in local currency terms.
Central Bank Strategy Shifts Global Dynamics
A significant development emerged as China positioned itself to become a custodian of foreign sovereign gold reserves through the Shanghai Gold Exchange. Bloomberg reported that the People’s Bank of China is courting central banks in friendly countries to store their gold within China’s borders, potentially strengthening its global financial influence.
This move comes as global central banks maintain aggressive gold purchasing programs. Central banks worldwide are projected to acquire over 1,000 metric tons of gold in 2025, marking their fourth consecutive year of massive purchases as they diversify reserves away from dollar-denominated assets. The World Gold Council’s latest survey revealed that 95% of central bankers expect global gold reserves to continue increasing, with 43% planning to boost their own holdings.
Geopolitical Tensions Sustain Safe-Haven Demand
Ongoing conflicts in Ukraine and the Middle East continue to drive safe-haven demand for precious metals. Rahul Kalantri from Mehta Equities observed that “gold and silver showed no signs of slowing, with both metals soaring to fresh records,” as silver reached its strongest level in nearly 15 years.
The precious metals rally reflects broader investor concerns about global stability, with ETF inflows returning after previous outflows. The FTSE Global All Cap Precious Metals and Mining Index has surged 86% year-to-date, massively outperforming global equities.
As markets await further guidance from Federal Reserve Chair Jerome Powell and Friday’s personal consumption expenditure data, analysts expect precious metals to maintain their upward trajectory amid persistent economic uncertainties and ongoing geopolitical risks.