Gold: Pause button for the record chase

Commodities analyst Michael Blumenroth reports further gains for gold, silver, and platinum as he summarizes the week in precious metals trading.
 

25 September 2025. FRANKFURT (Xetra-Gold). I could have used another round number as this week's headline, but the price did not quite reach $3,800 per ounce this week. Nevertheless, the rally in gold prices entered a new round at the beginning of the week with astonishing momentum. The foundation for this was likely laid by buyers of gold ETCs, with the trigger for the recent price surge being the resumption of interest rate cuts by the US Federal Reserve last Wednesday and expectations of further cuts in the future. On Friday last week, investors purchased around 861,000 ounces of gold ETCs worth around $ 3.2 billion, the strongest single-day purchases since January 2022.

Buying interest also drives silver and platinum prices

Net holdings of gold ETCs have risen by around 12.4 million ounces since the beginning of the year to 95.8 million ounces. Buying interest continued at the beginning of this week. The rally also spread to silver prices (14-year high) and platinum prices (11-year high). Precious metals rose despite slightly higher yields and a somewhat stronger US dollar. Some trend followers, i.e., market players who enter markets when they believe they have identified a trend, should have jumped on the bandwagon at the beginning of this week. 

However, perhaps we should keep things in perspective: Market movements that are very dynamic often offer potential for correction when the first profit-taking occurs. With a price increase of more than 12 percent within 25 trading days, there are indications that the first market players cashed in their gains in the middle of the week.

Gold in US dollars with weekly gains

While gold prices were still trading at US$3,655 per ounce on Thursday morning last week, they initially fell back to US$3,628 on the same day. After rising to 3,685 US-Dollars by the end of the week, gold prices reached one record high after another on Monday and Tuesday, finally pausing at around 3,791 US-Dollar per ounce on Tuesday morning. Yesterday at noon, prices fell slightly to 3,730 US-Dollars. Gold started today's trading day at around 3,740 US-Dollars per ounce.

Xetra Gold trades above €100 per gram

The Xetra Gold price also shone with a new record high. During normal trading hours, it initially fell from €99.60 per gram on Thursday morning last week to around 99.15 Euro. With the rise in the US dollar price of gold, there was no stopping the Xetra Gold price from the beginning of the week. Due to the slightly weaker euro against the US dollar, the new record high was only reached yesterday, at around 103.35 Euro per gram. The trading day then ended at 102.65 Euro. If the price at 7 a.m. is still valid at the start of trading, Xetra Gold is likely to start trading this morning at around 102.40 Euro per gram – within sight of the record high.

Outlook: Will profit-taking now cause volatility?

In the medium term, there are still many factors pointing to further upside potential for gold prices. However, with the end of the month approaching at the beginning of next week, there could be further profit-taking. In addition, many speculative market players are likely to have jumped on the bandwagon in recent days, which increases the potential for further profit-taking and could possibly lead to more volatility. At the end of next week, new labor market data will be released.

I wish all readers a relaxing weekend with less rain than has fallen in Frankfurt in recent hours.