The Federal Reserve is set to cut interest rates in September! Gold hits a historic high, Morgan Stanley: aiming for $3,800 by the end of 2025!
The Federal Reserve is about to cut interest rates, with the market expecting a nearly 90% chance of a 25 basis point cut at the meeting on September 17. Gold prices have reached a historic high of $3,508 per ounce, and silver prices have also risen to a 14-year high. Morgan Stanley predicts that gold prices could reach $3,800 per ounce by the end of 2025, while Goldman Sachs expects gold prices to rise to $3,700 per ounce by the end of 2025 and further climb to $4,000 per ounce by mid-2026
Investment Insights - The Federal Reserve is about to cut interest rates, and gold and silver prices have surged in advance, with a potential increase of 6% in the future.
On September 17th, Eastern Time, the Federal Reserve (FED) will announce the results of its latest monetary policy meeting.
According to the CME FedWatch tool, the market currently expects a nearly 90% chance of a 25 basis point rate cut at the FOMC meeting on September 17th, with a total of 2 rate cuts expected within the year.
【Source: CME FedWatch Tool】
As the rate cut date approaches, precious metal prices continue to rise. On September 2nd, the price of gold reached $3,508 per ounce, setting a new historical high, while silver prices also surged to a 14-year high.
Historical data shows that within 60 days of the start of a rate cut cycle, gold prices typically rise by an average of 6%. If history repeats itself, gold prices could rise to around $3,700 per ounce in the future.
Morgan Stanley stated that with multiple favorable factors such as the start of the Federal Reserve's rate cut cycle, a continued weakening of the dollar, inflows into exchange-traded funds (ETFs), and strong central bank demand for gold, gold prices are expected to rise to $3,800 per ounce by the fourth quarter of 2025.
Goldman Sachs predicts that gold prices will rise to $3,700 per ounce by the end of 2025. By mid-2026, gold prices are expected to further climb to $4,000 per ounce
