By Felipe Barragán, Expert Research Strategist at Pepperstone

September 24, 2025

“Gold advanced to a fresh all-time high on Tuesday, lifted by expectations of further Federal Reserve easing and persistent weakness in the dollar. Markets are positioned for two more rate cuts before year-end, but caution from several policymakers has reminded investors that inflation remains a constraint, tempering aggressive easing bets. Powell’s remarks later today and Friday’s PCE data will be critical in shaping near-term direction.

In parallel, structural demand drivers remain in focus. Gold-backed ETFs attracted 35.5 tonnes last week, reinforcing sentiment. Additionally, reports that China is seeking to act as custodian of foreign sovereign gold reserves underscore Beijing’s ambition to expand its influence in the bullion market and reduce reliance on Western financial hubs. Combined with the PBoC’s steady purchases, the initiative highlights the importance of central bank demand as a long-term pillar of support.

Meanwhile, global monetary policy remains broadly supportive for the metal. The Swiss National Bank is expected to leave interest rates at 0% this week, adding to a global backdrop of subdued yields that favours non-yielding assets like gold.

Geopolitical frictions continue to anchor safe-haven flows. Escalating violence in Gaza and renewed Russian incursions in Eastern Europe support a defensive bid in gold.”