Podcast: Play in new window
Let’s take a look at where prices stand as of Wednesday, September 17:
The price of gold is up 0.8%, sitting at $3,660 as of recording. Intraweek, gold broke above $3,700 twice, reaching a new record high.
The price of silver is up 1.5% at $41.60. At one point during the week, silver was up almost 5%.
Platinum is down about 1.3% at $1,365. Platinum is on a rising trendline — putting in highs right at the end of the week and then a little bit of a sell off later in the week.
Palladium is down 2.2%, but just like platinum, it’s showing a rising trend over the last couple of weeks.
Looking over at the paper markets…
The S&P 500 is up 1% this week, currently sitting at 6,600 even. It also put in a new high on Tuesday leading into the Fed announcement September 17.
The US dollar index is down another 1% currently sitting at 96.9. It was as low as 96.2 and that 96.2 actually breaks the July lows, which was our lowest price on the dollar over the last couple of years.
Fed Cuts Rates Amid External Pressure
The Fed’s latest 25 basis point rate cut stands out not just as a technical policy move, but as a foundational realignment of market risk and investment flows. Despite markets hoping for a more aggressive cut, the modest move was driven primarily by external pressures—political, not data-driven.
For gold investors, this hints at continued uncertainty and a growing reliance on monetary intervention rather than structural economic health. That “kick the can” approach, especially with further cuts on the table, should reinforce conviction that gold remains a primary beneficiary when central banks are forced into defensive stances against inflation and soft labor data.
Global Central Banks Are Accumulating Gold—Except the U.S.
An extraordinary 95% of global central banks have committed to boosting gold reserves in the coming year, while the U.S. stands conspicuously inactive. From an investor’s lens, this divergence is telling.
Sovereigns are clearly hedging against both dollar weakness and continued de-dollarization efforts led by emerging and Eastern economies. The absence of action by the U.S. Fed reflects a bias to protect the dollar’s primacy, but global flows continue to set a formidable structural floor under gold prices—one not easily undone by short-term corrections.
The Dollar Hits Its Lowest Level Since 2022
With the dollar index plumbing its lowest level since early 2022, gold’s recent all-time highs should be viewed not as speculative exuberance but as an accounting of relentless fiat erosion.
Investors should recognize that even as interest rates hover within recent historical ranges, the promised “strengthening” of the dollar through rate hikes appears illusory in the face of chronic monetary expansion. The interplay of currency weakness and asset price inflation aligns perfectly with gold’s established value proposition in diversified portfolios.
The “Revaluation” Debate: Mirage or Material?
Debate around a potential revaluation of U.S. gold reserves is more than financial theater—it’s a lighting rod for risk analysis. Even marked to market, the nearly $1 trillion boost to Treasury assets would barely dent the federal deficit.
More telling for investors: if policymakers “solve” balance sheet constraints through creative accounting, the real risk is wholesale currency devaluation. Conversely, if the U.S. refuses to follow other central banks in raising gold’s official footprint, investors should see this as reason to further diversify out of paper claims and into tangible ounces.
Scarcity vs. Price: The Investor’s Dilemma
The most underappreciated risk for gold investors isn’t volatility, but outright scarcity when waves of fear hit the market. Historical bull runs, including 2011’s supply squeeze, prove that physical availability always trumps chart-watching.
Investors who dollar-cost average and seek to accumulate ounces regardless of short-term price movements are consistently rewarded. In contrast, waiting for dips or fearing short-term highs can mean missing the window entirely—especially as institutions and funds crowd into a finite market.
Add More Ounces to Your Portfolio
Want expert advice on growing your wealth and legacy? The team at McAlvany Precious Metals is happy to offer you a no-obligation, complimentary portfolio review.
We have a collective 75 years experience investing in the precious metals market, and we can help you find opportunities for growing your portfolio as well as adding ounces through strategic ratio trades. Reach out to us at 800-525-9556.
