Amid a backdrop of ongoing geopolitical uncertainty, a weakening U.S. dollar, ongoing market uncertainty, and creeping inflation, precious metals are having a banner year. Gold has set 11 all-time highs and has posted a year-to-date (YTD) gain of more than 45%. Silver, which often follows gold, has outperformed the yellow metal with a YTD gain of nearly 57%. Meanwhile, platinum is up 75% in 2025, trading near a 17-year high.
In September, the Federal Reserve’s first rate cut since 2024 added another tailwind for precious metal prices. The asset class historically exhibits an inverse correlation with interest rates, which could prove to be a catalyst again this month. According to the CME Group’s FedWatch Tool, there’s currently a 96.7% chance that the Fed will cut rates again at its October meeting.
