Gold Inches Up Post-Fed, While Platinum Steals the Spotlight
Saturday, July 19th 2025
Gold prices ticked slightly higher on Wednesday, nudging upward after the U.S. Federal Reserve announced it would maintain current interest rates. But the real star of the day was platinum, which exploded to its highest level in over four years, stealing attention from the traditionally dominant yellow metal.
Fed Holds Steady, Market Waits for Direction
The Federal Reserve’s widely anticipated decision to hold rates steady did little to rattle markets, which have been treading water amid ongoing geopolitical unease and monetary policy uncertainty. Spot gold climbed a modest 0.1% to $3,392.08 per ounce, while U.S. gold futures advanced by less than 0.2%, settling at $3,412.50.
“Traders are largely in a holding pattern,” noted Edward Meir, an analyst at Marex. “Between the Fed meeting and the escalating conflict in the Middle East, there’s a lot of hesitation in the air.”
Tensions Escalate in the Middle East
Investors’ nerves were further rattled by developments out of Tehran, where a defiant Ayatollah Ali Khamenei publicly rejected U.S. President Donald Trump’s demands for unconditional surrender. Scenes of panic unfolded as residents clogged Tehran’s highways in an attempt to flee intensifying Israeli airstrikes. Though such instability typically boosts safe-haven demand for gold, the metal’s response has been muted.
Trump Criticizes Fed Chair Powell Again
In a familiar refrain, former President Trump took aim at Fed Chair Jerome Powell, criticizing what he characterized as a failure to cut interest rates. Trump, who appointed Powell during his previous term, said he expected more aggressive action from the central bank in light of mounting global risk and economic strain.
Gold Falters After Early Week High
Although gold surged to a weekly peak of $3,451.04 on Monday—just shy of April’s all-time record—the rally fizzled in the days that followed. A combination of profit-taking and shifting investor focus has left the metal drifting sideways, despite persistent geopolitical tensions and the Fed’s dovish stance.
Shift in Attention to Other Metals
Goldman Sachs, in a recent research note, pointed out that investor interest has increasingly shifted toward other precious metals, particularly silver and platinum. “Recent rallies in these metals are primarily speculative and not grounded in solid fundamentals,” the bank cautioned.
Platinum Soars, Silver Slides
Platinum delivered the day’s biggest surprise, surging 5.1% to hit $1,327.03—its highest price point since February 2021. Traders are speculating that Chinese consumers, deterred by high gold prices, could pivot toward platinum jewelry instead.
“The drop in gold jewelry demand in China has opened the door for platinum to gain ground,” explained independent metals trader Tai Wong. “If the strong demand seen in May continues, platinum could rally further. But if last month proves to be an anomaly, we could see a sharp reversal.”
Meanwhile, silver lost some shine, sliding 0.8% to $36.95 per ounce, after briefly touching a level not seen since early 2012.
Palladium Steady Amid Broader Volatility
Palladium remained relatively stable, inching up 0.1% to $1,052.91 as it tracked broader sentiment across the metals complex.
Looking Ahead
While gold continues to hover near recent highs, it appears content to take a backseat—at least temporarily—as investors explore alternative opportunities in other precious metals. With geopolitical risks unresolved and global monetary policy still in flux, all eyes remain on central banks, energy markets, and diplomatic headlines for the next directional catalyst.
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