Gold Prices Retreat as Investors Anticipate U.S. Interest rate Adjustments
DUBAI, September 17, 2025 – gold prices experienced a decline tuesday amid growing investor expectations of potential interest rate cuts by the U.S. Federal Reserve. The shift in sentiment comes following calls from U.S. President Donald Trump for Federal Reserve Chair Jerome Powell to pursue a “greater” reduction in interest rates.
The downturn impacts both retail consumers and institutional investors, with implications for the broader precious metals market. A decrease in interest rates typically diminishes the appeal of holding non-yielding assets like gold, perhaps leading to reduced demand and downward pressure on prices. This follows a period of gains for gold, which had achieved increases for four consecutive weeks as investors anticipated such a rate reduction.
Data from the SBDD Gold Terrass, the world’s largest gold-backed vault, indicated a 0.32% decrease in precious metal holdings to 979.95 tons on September 16, 2025, compared to 976.80 tons on September 15, 2025.
Other precious metals also saw varied performance. Silver prices in spot transactions fell 1.3% to $41.98 per ounce, while platinum edged up 0.1% to $1392.25, and palladium rose 0.5% to $1182.21.
the market’s reaction underscores the sensitivity of gold prices to macroeconomic factors, particularly U.S. monetary policy. Investors will be closely watching upcoming economic data and statements from the Federal Reserve for further clues about the timing and extent of any potential interest rate adjustments.
