Gold and Silver Price Rallies Continue After US Fed Cuts Interest Rates
Gold and silver prices have hit new highs on the back of the US Federal Reserve’s decision to cut interest rates by 0.25 points, with forecasts that further cuts may be on their way.
Following the first US interest rate cut this year, there have been suggestions from the US Federal Open Market Committee that interest rates are still too high.
That new news saw gold jump to US$3,700 per ounce and silver to US$44/oz on the back of favourable market sentiment—despite the ongoing impacts of President Trump’s tariffs.
Leading Major Commodities
2025 has been a major period of growth for silver, with prices up more than 50% to date, and gold has also been among the year’s best performing major commodities.
Leading global banks such as Goldman Sachs are forecasting further increases, with the World Gold Council (WGC) suggesting that a shift in focus by the Fed from inflation to growth could be the spark for even higher prices.
The continued gold price and silver rallies come after the WGC and the Silver Institute investigated market options.
Wholesale Digital Gold
The WGC, Linklaters, and Hilltop Walk Consulting recently unveiled plans to transform the global gold market through the introduction of Wholesale Digital Gold—a new concept aimed at enhancing the ownership, trading, and utilisation of gold.
“The UK Government’s recent Financial Markets Digital Strategy publication highlights the importance of digitalising wholesale markets to drive efficiency, resilience, and innovation—an ambition that closely aligns with our own,”, WGC global head of market structure and innovation Mike Oswin said.
“As the world’s leading gold trading hub, with the London market clearing an average of 20 million ounces daily, the UK is well positioned to lead the way in improving the way gold is traded and cleared to the benefit of all market participants.”
“Introducing a robust legal structure and innovative technology for gold ownership and settlement will only reinforce London’s role in the global gold market,” he added.
Australia on the Rise
The Silver Institute reported recently that physical investment is a structurally important part of global silver demand, and the most volatile.
To gain a deeper understanding of the critical demand centre, the Institute commissioned a new market trend report on the “Key Physical Silver Investment Markets.” From leading precious metals consultancy Metals Focus.
The report found that Australia had emerged as the world’s fourth-largest physical silver market in recent years, driven by two main factors—the increasing investment in silver by retirement accounts, and the favourable tax structure applicable to physical silver investment products.
Analysts forecast physical silver demand in Australia will rise by 11% this year as cost-of-living-related selling, as inflation edges lower and interest rates fall.