NextFin news, On Thursday, September 25, 2025, gold and silver prices remained steady below recent highs as traders weighed the possibility of further Federal Reserve interest rate cuts against cautious remarks from Fed Chair Jerome Powell. The precious metals market is currently navigating a complex outlook shaped by monetary policy expectations and inflation concerns.
Gold (XAU/USD) traded near $3,740 per ounce, holding above key support levels, while silver (XAG/USD) hovered around $43.95. Market participants are anticipating two additional Fed rate cuts before the end of 2025, following the initial reduction earlier this month. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold and silver, supporting investor demand.
However, Powell’s recent comments have tempered optimism. He cautioned that aggressive rate cuts could jeopardize inflation control efforts, potentially forcing the Fed to reverse course. This stance lifted the U.S. dollar to a two-week high, which in turn limited upward momentum for precious metals, as a stronger dollar generally weighs on gold and silver prices.
Market watchers are closely monitoring a series of U.S. economic indicators scheduled for release, including the final second-quarter GDP figures, durable goods orders, and weekly jobless claims. The most critical data point is Friday’s Core Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge. Analysts expect this report to be a key catalyst for the next directional move in gold and silver prices, either reinforcing expectations for policy easing or signaling persistent inflation pressures.
Geopolitical tensions in Eastern Europe and the Middle East continue to provide a safety net for precious metals by sustaining safe-haven demand. Silver, which serves both industrial and investment roles, remains particularly sensitive to shifts in global risk sentiment.
Technically, gold is consolidating after retreating from resistance near $3,791, with immediate support at the 50-day exponential moving average around $3,731. A break below this level could expose lower support zones near $3,701 and $3,685. On the upside, reclaiming $3,760 could pave the way for a move toward $3,790 and beyond.
Silver’s price action shows consolidation after a recent peak near $44.44, with support at the 50-day EMA near $43.59 and the 200-day EMA at $42.08. Momentum indicators suggest neutral conditions, with potential upside targets at $44.82 and $45.32 if buyers maintain control. Conversely, a drop below $43.59 could trigger a pullback toward $42.97 and $42.59.
In summary, gold and silver prices on Thursday are balancing between the market’s anticipation of Fed rate cuts and Powell’s cautionary signals, with the U.S. dollar’s strength and upcoming inflation data playing pivotal roles. Investors remain cautious, awaiting Friday’s Core PCE inflation report for clearer guidance on the trajectory of U.S. monetary policy and its impact on precious metals.
Source: FXEmpire, article by Arslan Ali, updated September 25, 2025, 12:26 GMT+00:00, https://www.fxempire.com/forecasts/article/gold-xauusd-silver-price-forecast-fed-cuts-vs-powells-caution-shape-outlook-1550551
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