NextFin news, Gold prices remained subdued on Friday, September 19, 2025, holding a decline after falling from recent record levels. This movement followed comments from Federal Reserve Chair Jerome Powell, whose cautious stance on potential interest rate cuts dampened investor enthusiasm for the precious metal.
As of 10:40 a.m. Singapore time, gold was trading near $3,646.17 an ounce, showing little change for the week. Market analysts attributed the restrained demand to Powell’s remarks indicating that the Federal Reserve is not yet ready to commit to lowering interest rates, signaling a more cautious monetary policy outlook.
Powell’s comments, delivered during a Federal Reserve event earlier this week, emphasized that while inflation pressures have eased, the central bank remains vigilant and will adjust policy as needed to sustain economic stability. This tempered expectations for imminent rate cuts, which typically boost gold prices by reducing bond yields and the opportunity cost of holding non-yielding assets like gold.
The gold market’s reaction reflects its sensitivity to U.S. monetary policy signals, as lower interest rates generally increase gold’s appeal as a safe-haven asset. However, Powell’s cautious tone has led traders to reassess the timing and likelihood of rate reductions, resulting in subdued buying interest.
Market participants continue to monitor upcoming economic data and Federal Reserve communications for further guidance on the trajectory of interest rates and their impact on gold demand.
Explore more exclusive insights at nextfin.ai.
