The price of Gold (XAUUSD) displayed significant volatility at the start of trading on Monday (September 15, 2025). Earlier, it dipped to around $3,626 per troy ounce, only to rebound to approximately $3,646 per troy ounce just before noon.
The shift in Gold prices followed statements from U.S. President Donald Trump indicating that The Fed is expected to implement substantial rate cuts this week.
Recommended
Recommended
Recommended
Recommended
“I believe there will be a considerable reduction in interest rates,” Trump stated, according to reports from Bloomberg.
Throughout the remainder of this year, The Fed is set to announce monetary policy changes three more times, including this Thursday, at the end of October, and again in December. Typically, interest rate reductions occur in increments of 25 basis points (0.25%). Data from the Fedwatch tool indicates that the market anticipates the Fed’s rates to be in the range of 3.5%-3.75% by December. This suggests that market participants expect three separate reductions of 25 basis points each.
If a significant rate cut occurs as Trump suggests, it implies that The Fed may lower rates by at least 50 basis points this week. Such a move could have substantial implications, indicating that The Fed is delayed in reducing rates as the U.S. economy faces considerable slowdowns. This situation could further drive up Gold prices.
