The surge in gold prices has been unstoppable since the beginning of last week, as it consistently breaks new all-time records. On Wednesday (December 24, 2025), gold skyrocketed past the psychological barrier of US$4,500 per troy ounce with ease.
By 6:55 AM WIB, gold reached around US$4,509 per troy ounce, marking an increase of over US$25 or 250 pips from Tuesday’s closing price. Since the start of the week, gold has surged more than US$170.
This rapid rise in gold prices has occurred as market participants grow increasingly optimistic that the Federal Reserve will pursue a more aggressive interest rate cut strategy in the coming year, in response to the weakening U.S. labor market and a slowdown in inflation growth. Interest rates are expected to be reduced two to three times, surpassing the Fed’s prior projection of only a single cut.
Additionally, Fed Chair Jerome Powell is set to conclude his term in May 2026, and President Trump has already indicated that Kevin Hassett is a strong contender for Powell’s replacement.
Hassett currently serves on Trump’s Council of Economic Advisers and is rumored to be nominated as the new Fed Chair soon. Previously, Hassett has remarked that interest rates could be lowered further under Powell’s leadership, suggesting that if he officially steps into the role of Fed Chair, we might see even more aggressive interest rate cuts ahead.
