Finance breaking news: Gold prices hit a record high of over $3,750 an ounce on Monday. New Federal Reserve governor Stephen Miran said that interest rates are too high and must be reduced much further. Miran delivered his first speech at the Economic Club of New York and contended that the Fed should lower rates by nearly two percentage points.
Miran was a new appointee by President Trump and cast his vote last week for an even larger rate cut than other Fed members wished to have. When the rates are reduced, gold is favored more by individuals wanting to invest money with safety. The Fed reduced the rates by 0.25 points on September 17, lowering the prime rate to between 4.00% and 4.25%, which was the first rate reduction since December.
Individuals Invest More Dollars In Gold Investments
Gold investment funds collected $38 billion for the first half of 2025, the highest amount of money since 2020. They now possess 3,615.9 tons of gold, the largest quantity since August 2022. When interest levels are lower and the dollar is weaker, gold is more affordable for individuals elsewhere to purchase, so more investors desire it.
Central banks around the world are also buying record amounts of gold. They expect to purchase 900 tons in 2025, which is almost twice what they normally buy each year. For four years straight since 2022, central banks have bought more than 1,000 tons of gold annually because they want to own fewer US dollar investments and more gold instead.
Political Problems Make People Want Safe Investments
Gold prices rose due to global trade tensions and political disputes. President Trump’s wars and trade policies in various parts of the globe make investors anxious about investing their money in common investments. When individuals fret about politics or the economy, they tend to purchase gold since it retains its value even during difficult times.
Gold prices in India also reached new highs on Monday, at Rs 1,12,820 per 10 grams. Silver prices too increased to new heights above Rs 1,34,000 per kg. Market analysts believe gold prices will continue increasing since the central banks will continue purchasing it, and political issues in the world are not dying down in the near future.
Inspirepreneur Insight
When things get unclear, intelligent individuals shift their funds into safer domains, much the same way that gold is in vogue when times are hard. Entrepreneurs can use this trick by saving some money and not investing all of it into risky assets. Having substitutes and alternative sources of income guards against issues, much the same way that central banks go out and purchase gold to guard against currency issues.
FAQs
1. Why did gold hit an all-time high price?
A Fed official explained that rates need to be reduced further, and global issues caused individuals to seek more secure investments.
2. How much money has been invested in gold funds this year?
Roughly $38 billion went into gold funds during the first half of 2025.
3. How much gold are central banks purchasing?
Central banks anticipate purchasing approximately 900 tons of gold in 2025.
4. What was the recent rate cut by the Fed?
The Fed reduced rates by 0.25 points to 4.00%-4.25% on September 17.
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