NextFin news, On Monday, September 22, 2025, gold prices hovered near historic peaks, with spot gold rising 0.2% to $3,691.53 per ounce and December futures increasing 0.6% to $3,727.40. This follows an all-time high of $3,707.40 reached on September 17, according to data reported by Ukrainian National News (UNN) citing Reuters.
The sustained high prices are attributed to the US Federal Reserve's recent decision to cut the benchmark interest rate by 25 basis points last week and signal potential further easing of monetary policy. This dovish stance has bolstered investor interest in gold as a safe-haven asset amid economic uncertainty.
Tim Waterer, chief market analyst at KCM Trade, noted, "Gold has returned to the $3,700 threshold, and new highs could be reached this week if US macroeconomic data continues to support the Fed's dovish narrative." Market participants are closely watching the upcoming release of the US core personal consumption expenditures (PCE) index, the Fed's preferred inflation gauge, which could influence future policy decisions.
Additionally, ongoing geopolitical tensions stemming from the Russia-Ukraine war continue to drive demand for gold. The conflict has heightened global economic uncertainty, reinforcing gold's role as a store of value during turbulent times.
Fed Chairman Jerome Powell is scheduled to speak on Tuesday, September 23, 2025, with his remarks expected to provide further clarity on the central bank's monetary policy direction amid inflation risks.
Financial expert Olena Sosedka commented on the changing dynamics of gold demand, stating that while gold's popularity as jewelry has declined in key markets like India and China due to high prices, it is increasingly viewed as a capital preservation tool in times of economic instability and inflation.
Goldman Sachs analysts have projected that if the US dollar continues to weaken, gold prices could reach $3,700 per troy ounce by the end of 2025.
In summary, the combination of the Fed's dovish policy signals and persistent geopolitical risks related to the Russia-Ukraine war are key factors sustaining gold's near-record price levels as of Monday, September 22, 2025.
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