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    Home»Business»Gold rises after Fed rate cut lifts global investor demand
    Business

    Gold rises after Fed rate cut lifts global investor demand

    December 13, 2025
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    WASHINGTON, December 13, 2025: Gold prices climbed globally on Friday after the United States Federal Reserve cut its benchmark interest rate by 25 basis points to a range of 3.50% to 3.75%, marking the central bank’s third rate reduction this year. The decision strengthened gold’s position as a preferred safe-haven asset amid easing monetary conditions and moderating inflation data. Spot gold traded near a seven-week high at around $4,270 per ounce during late trading sessions. The rally was supported by lower U.S. Treasury yields and a softer dollar, which reduced the opportunity cost of holding non-yielding assets. Gold futures in New York and London also advanced, with trading volumes increasing sharply across major global exchanges. On the New York Mercantile Exchange, open interest in gold contracts rose, indicating sustained institutional demand.

    Precious metals rally worldwide after U.S. Federal Reserve announces rate cut. (AI-generated image)

    Silver followed suit, reaching near-record levels above $60 per ounce, while platinum and palladium posted moderate gains as investors increased exposure to precious metals. The broader precious metals complex recorded weekly gains across the board. In Asia, bullion prices strengthened in response to the Fed’s move. India’s Multi Commodity Exchange (MCX) reported higher gold futures, reflecting global momentum and domestic buying ahead of year-end demand. The Shanghai Gold Exchange saw an uptick in institutional activity, driven by favorable market conditions and the impact of lower U.S. rates on global capital flows. European and North American markets mirrored the rally. Mining and resource-linked equities led gains, lifting key indices such as the FTSE 100 and the S&P 500.

    Precious metals extend gains across major trading hubs

    Precious metal producers advanced on expectations of sustained demand and stable commodity prices. The gains highlighted gold’s continued relevance as a core component of diversified portfolios in times of monetary transition. The Federal Open Market Committee said the decision was aimed at sustaining economic expansion while maintaining price stability. Officials noted that inflation has moderated in recent months, though growth remains uneven across sectors. The statement reaffirmed the Fed’s readiness to adjust policy as needed to support employment and long-term stability. Data from commodity funds showed increased inflows into gold-backed exchange-traded products during the week, reflecting renewed institutional interest. Central banks across several emerging markets continued to add to their gold reserves, maintaining a steady pace of diversification within foreign exchange portfolios.

    Global investors maintain exposure to gold amid easing cycle

    Analysts noted a buildup of long positions in commodity trading data, underscoring confidence in the asset’s resilience. Oil and industrial metals also traded higher following the Fed’s announcement. Brent crude rose to around $84 per barrel, supported by a weaker dollar and expectations of stable global demand. Copper prices advanced on firm manufacturing indicators from Asia, while the wider commodity index recorded weekly gains amid improved investor sentiment. Gold has now gained more than 12% since the start of 2025, extending its upward trend supported by sustained demand from investors and central banks. The metal’s strong year-to-date performance underscores its role as a hedge against volatility and a store of value during shifting monetary cycles. – By Content Syndication Services.

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