Gold price today posted impressive gains in trading on Friday (12/12/2025), breaking through to a high of US$4,266, up 1.66% in just over a month. This momentum came after the Federal Reserve cut interest rates by 25 basis points to 3.50-3.75%. The Fed announced this interest rate after holding a two-day Federal Open Market Committee (FOMC) meeting. This cut is the third this year, following the first cut in September and the second in October. This interest rate is the lowest since September 2022, or more than three years ago.
This rate cut has weakened the dollar and increased demand for safe-haven assets. Gold price today movements are increasingly attracting market attention due to increasingly complex macro pressures. Spot gold rose 1.2% to $4,280.08 per ounce, its highest level since October 21. February gold futures closed 2.1% higher at $4,313 per ounce. Meanwhile, silver set a new record, pushing up other precious metals such as platinum and palladium.
Impact of Interest Rate Cuts: Why Did Gold Price Today Surged?
The Fed’s interest rate cuts directly pushed the dollar to an eight-week low. A weaker dollar makes gold cheaper for international buyers, thereby boosting demand. Marex analyst Edward Meir emphasized that silver was the driving force behind today’s commodity rally. However, he further stressed that inflation, which has not yet reached the 2% target, makes interest rate cuts a bullish factor for gold. Under these conditions, gold price today reflects the market’s response to monetary policy that is considered too aggressive.
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Chain of Rate Cuts But Potential Pause Ahead
The Fed has cut interest rates three times in a row. However, the latest FOMC statement indicates a possible pause to assess labor market conditions and inflation, which is “still quite high.” The market is now awaiting the non-farm payrolls report on December 16 for further clues on the central bank’s policy direction. This uncertainty makes gold price today a key indicator of risk-off sentiment. In an environment of falling interest rates, declining yields, and sticky inflation, gold is once again becoming the choice of investors.
Gold on the Verge of a New Record?
Technically, February gold contracts are in a bullish trend with a target increase towards the main resistance at $4,433, which is also a record high. Strong support is at $4,100, while short-term resistance is in the $4,251–$4,285 range. On the other hand, silver has broken out of a bull flag pattern with a technical target of $65, reinforcing the bullish momentum of precious metals. This aggressive movement has also strengthened the rally in today’s gold price, creating the potential for a continued rally.
Indian ETFs, Oil Prices, and Treasury Movements
The Indian regulator’s policy, which now allows pension funds to invest in gold and silver ETFs, adds to new demand support. Stable oil prices and Treasury yields falling to 4.166% also reinforce investors’ reasons for seeking gold. With all these factors, it is not surprising that gold price today is a hot topic for market participants who are monitoring global policy directions and dollar dynamics.
Long Term Gold Investment Strategies for Investors
With gold prices approaching historic levels, investors need to be more strategic in allocating their capital. Here are some relevant long-term strategies:
1. Use Dollar-Cost Averaging (DCA)
When today’s gold price is often volatile, DCA helps investors buy gold periodically without having to guess the peak or bottom price. This strategy is effective in reducing the risk of extreme prices.
2. Diversify Gold Asset Types
Don’t just focus on physical gold. Combine it with:
- Gold ETFs
- Gold mutual funds
- Gold mining stocks
Diversification helps mitigate volatility that may arise in physical gold prices.
3. Hold Gold as a Long-Term Hedge
Gold is not an instrument for “getting rich quick.” However, when inflation rises or monetary policy is loose, today’s gold prices tend to strengthen. Hold 5–10% of your portfolio in gold as an asset hedge.
4. Pay Attention to the Fed’s Policy Cycle
Interest rate cuts, a weakening dollar, and high inflation are a classic bullish combination for gold. Follow FOMC developments to gauge the direction of the next gold trend.
5. Set a 3–10 Year Time Horizon
Gold shines when there is long-term uncertainty. Wise investors view gold as a multi-year store of value, not just a short-term trading opportunity.
Gold price today rally reflects a powerful combination of loose monetary policy, a weakening dollar, persistently high inflation, and a surge in global demand. With so many factors still in flux, investors need to continue to follow market directions to make smarter decisions. Do you still want to buy a gold after see today’s price gold?
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