Gold prices continued their impressive rally on Friday, September 19, 2025, securing a fifth straight week of gains as investor optimism grows for another interest rate cut from the U.S. Federal Reserve. The precious metal has been a strong performer throughout September, driven by a combination of monetary policy expectations and robust physical demand.
The market’s focus has intensified following the Fed’s 25-basis-point rate cut earlier in the week. While the central bank’s commentary was seen by some as “less dovish than expected,” investors are overwhelmingly betting on further easing to come.
Investors Bet Heavily on October Rate Cut
The primary catalyst for gold’s recent strength is the widespread expectation of lower U.S. interest rates. Lower rates decrease the opportunity cost of holding non-yielding assets like gold, making it a more attractive investment compared to bonds or cash.
According to analysis from ADM Investor Services, financial markets are now pricing in a 92% probability of another rate cut at the Fed’s October meeting. This strong conviction is providing significant upward momentum for gold prices.
Key Drivers Supporting the Gold Price Rally
Beyond interest rate speculation, several other fundamental factors are contributing to the bullish sentiment in the gold market.
Weekly Market Performance: Gold and Silver Prices (as of Sept. 19, 2025)
Precious metals closed the week on a high note, with silver posting particularly strong gains on Friday.
Swiss Gold Export Data Shows Temporary Disruption
In other market news, newly released Swiss customs data showed a temporary but dramatic disruption in trade flows. Bullion exports from Switzerland to the U.S. plunged by over 99% in August, falling to just 0.3 metric tons. The collapse was attributed to a “shock customs ruling” that briefly imposed tariffs on gold bars.
The White House later clarified the tariff exemption for gold, which was formalized in early September, allowing shipments to normalize.
Popular Gold and Silver ETFs: (GLD), (IAU), (GDX), (GDXJ), (SLV), (SIL), (SILJ), (NUGT), (PHYS), (SGOL), (BAR)
