Central Bank Federal Reserve has once again cut the interest rates. This time the Fed has reduced its key lending rate by 0.25 percentage points, due to which the new range has been fixed from 3.75% to 4%. This decision has come at a time when the threat of inflation has reduced somewhat, but the slowdown in the labor market remains a cause for concern. Interestingly, this decision comes during the US Government Shutdown, which has been going on for over a month, with official economic data not being available. In such a situation, the Fed has to depend on private data sources and alternative reports. The US economy lost nearly 32,000 jobs in September, indicating an economic recession. On the other hand, Trump Administration’s Tariffs have again fueled the fear of inflation. Now politics has also become heated – Donald Trump has indicated that he may announce a new Chair in place of Fed Chair Jerome Powell by the end of this year, while Powell’s term is to end in May next year.

Gold has created history in international markets! For the first time, gold is trading beyond $4000 per ounce, while the price of 10 grams of gold on MCX in India has reached close to ₹ 1.22 lakh. The government shutdown in America and the ongoing political uncertainty over President Donald Trump’s policies have created huge turmoil in the market. In such a situation, investors have turned towards safe investment options, due to which both the demand and price of Gold have increased. So far in 2025, Gold has jumped by more than 50% – which is the biggest since the Hyperinflation of 1979. Goldman Sachs estimates that gold could reach $4900 by the end of 2026, which would be more than ₹1.5 lakh in Indian currency. If the rupee remains weak against the dollar, it can go up to ₹ 1.55 lakh. Breakout levels of $ 4000 Gold and $ 50 Silver are now indicating the next big rise. As long as Global Central Banks keep buying Gold and there remains confusion over Trump’s policy, the pace of Gold is not going to stop.