Gold at its peak is locked at 9:00 PM! Attention is on the interest rate decision and Powell

TÜRKİYE GAZETESİ/Economics Service - The US Federal Reserve's interest rate decision, eagerly awaited by global markets, will be announced tonight at 9:00 PM Turkish time. Following today's decision, Fed Chair Powell's remarks will be followed by dot plots and projections reflecting employment, growth, and interest rate expectations for the coming period. The Fed releases dot plots every three months.

The entire market may move

If these Fed projections signal weakness in the labor market and growth, expectations of further interest rate cuts, including through 2026, could find support. Following the critical decision and announcements, warnings are being issued that volatility in the US dollar, currency pairs, precious metals, and stocks may increase.

IS THIS THE FIRST INTEREST RATE REDUCED THIS YEAR?

The primary expectation is for the US Federal Reserve to cut its key policy rate by 25 basis points. This would bring interest rates back to the 4.00%-4.25% range. If this scenario materializes, the US would see its first interest rate cut in 2025.

OUNCE GOLD IS CLOSE TO ITS PEAK…

Expectations of lower interest rates for the dollar have significantly supported the non-yielding precious metal in recent weeks, as they reduce the cost of holding gold. The price of gold per ounce in global markets tested an all-time high of $3,703 yesterday. Today's price continues to search for a balance near $3,682.

SEPTEMBER 17, 2025 GRAM GOLD

Meanwhile, the price of a gram of gold broke a record yesterday in the domestic market at 4,908 TL . The price of a gram of gold on September 17, 2025, will start the day at 4,890 TL.

While the price per gram in the jewelers in the Grand Bazaar is in the buying and selling range of 4,975-5,025 TL , quarter gold is being sold for 8,215 TL in the morning hours.

WHY IS GOLD RISING?

Looking at the developments affecting gold prices, investors are anticipating interest rate cuts at the Fed's October and December meetings. Analysts, particularly noting the weak signals from the US labor market, predict that the Fed could begin a series of rate cuts if no unpleasant surprises emerge regarding inflation.

Geopolitical risks in Russia-Ukraine and Gaza, as well as heavy inflows into central banks and gold funds, are also supporting the yellow metal.

WILL PROFIT COME FROM SALES?

Meanwhile, some analysts are warning that profit-taking is possible after the rapid rise in gold. These analysts predict that the Fed could deliver "hawkish messages" even if it cuts interest rates. They argue that ongoing US-China talks could also contribute to a de-escalation of trade tensions, and that these developments could put pressure on safe-haven assets. Support levels are seen at $3,600 and $3,500 per ounce.