2h early this morning, the FED decided to cut another 25 basis points. The current interest rate is now 3.75%, compared to 4.5% at the beginning of 2025.
This means the FED has cut rates three times in the past three months. This shows that the U.S. economy is showing negative signs, and the FED is forced to act even though inflation has not yet been brought back to 2% as Chairman Powell aimed for last year.
Last night, when the interest-rate decision was released, Gold prices jumped sharply and touched the 4247$/ounce level. Although there was volatility, it wasn’t considered too strong, and both the stock market and Crypto only saw wide-range wicks on both sides.
Therefore, although a ‘super bullish’ scenario was proposed when the FED cut interest rates, the reluctant nature of these cuts suggests that the market may experience more surprises and unpredictable movements toward the end of the year.
Gold is likely to continue moving sideways in the 4100 – 4300$/ounce range until 2026, waiting for new interest-rate signals in January 2026.
Leave a Reply