Are Gold and Silver Entering a New Supercycle After the Feds Latest Rate Cut?
Source: Kapitales Research
Highlights:
Gold rose 1.2% to $4,280.08 per ounce, at the time of writing, marking its strongest level in over a month after the U.S. Federal Reserve’s quarter-point rate cut drove the dollar down.
Silver soared nearly 4% to $64.22 per ounce, hovering just below its all-time high and driving strong momentum across platinum and palladium.
The Fed’s third consecutive rate cut, ongoing inflation pressures, and India’s approval of gold and silver ETFs for pension funds strengthened global demand for precious metals.
Precious Metals Rally as Dollar Weakens
Gold prices surged to their highest level in more than a month, lifted by the U.S. Federal Reserve’s latest policy move and strong momentum in the broader precious metals market. Spot gold jumped 1.2% to $4,280.08 per ounce, at the time of writing, reaching its strongest level since October 21. U.S. gold futures showed stronger gains, with the February contract closing 2.1% higher at $4,313 per ounce.
The rally came after the Federal Reserve delivered its third straight quarter-point rate cut, pressuring the U.S. dollar to an eight-week low and making gold — which is priced in dollars — more attractive to global buyers.
Silver Steals the Spotlight With Record High
While gold shone, silver dominated market attention, soaring nearly 4% to $64.22 per ounce, hovering just below the record high of $64.31 reached earlier in the session. Analysts say silver’s explosive upward momentum is helping lift other metals as well, including platinum and palladium.
Why the Fed’s Stance Matters
Despite inflation remaining above target, the Fed’s decision to cut rates again — and signal a possible pause — has reinforced bullish sentiment for non-yielding assets like gold. Lower borrowing costs generally make non-yielding assets like gold more appealing, drawing additional investor demand. During his second term, U.S. President Donald Trump has continued to push for deeper rate cuts, and his pick for the next Federal Reserve chair is widely expected to support a similarly accommodative policy stance.
Global Demand Trends Strengthen the Outlook
India added further momentum to the metals market by permitting pension funds to invest in gold and silver ETFs, signalling rising domestic appetite for precious metals. Platinum climbed 2.5% to $1,697.61, while palladium rose 1.1% to $1,492.55 at the time of writing.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Are Gold and Silver Entering a New Supercycle After the Feds Latest Rate Cut?
Highlights:
Precious Metals Rally as Dollar Weakens
Gold prices surged to their highest level in more than a month, lifted by the U.S. Federal Reserve’s latest policy move and strong momentum in the broader precious metals market. Spot gold jumped 1.2% to $4,280.08 per ounce, at the time of writing, reaching its strongest level since October 21. U.S. gold futures showed stronger gains, with the February contract closing 2.1% higher at $4,313 per ounce.
The rally came after the Federal Reserve delivered its third straight quarter-point rate cut, pressuring the U.S. dollar to an eight-week low and making gold — which is priced in dollars — more attractive to global buyers.
Silver Steals the Spotlight With Record High
While gold shone, silver dominated market attention, soaring nearly 4% to $64.22 per ounce, hovering just below the record high of $64.31 reached earlier in the session. Analysts say silver’s explosive upward momentum is helping lift other metals as well, including platinum and palladium.
Why the Fed’s Stance Matters
Despite inflation remaining above target, the Fed’s decision to cut rates again — and signal a possible pause — has reinforced bullish sentiment for non-yielding assets like gold. Lower borrowing costs generally make non-yielding assets like gold more appealing, drawing additional investor demand. During his second term, U.S. President Donald Trump has continued to push for deeper rate cuts, and his pick for the next Federal Reserve chair is widely expected to support a similarly accommodative policy stance.
Global Demand Trends Strengthen the Outlook
India added further momentum to the metals market by permitting pension funds to invest in gold and silver ETFs, signalling rising domestic appetite for precious metals. Platinum climbed 2.5% to $1,697.61, while palladium rose 1.1% to $1,492.55 at the time of writing.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au