EBC Financial Group Emphasises Risk Management as Gold Faces Triple Threat Volatility

Gold under pressure — EBC Financial Group highlights the importance of risk management as global forces drive heightened volatility.

Interest rate uncertainty, persistent inflation, and geopolitical risks converge to test gold’s resilience.

LONDON, UNITED KINGDOM, September 26, 2025 /EINPresswire.com/ -- Gold prices remain close to record levels as investors respond to a combination of monetary policy uncertainty, persistent inflation risks, and escalating geopolitical tensions. Spot gold rose 0.4% to US$3,778.78 per ounce on Wednesday after touching a record high of US$3,790.82 the previous session. U.S. gold futures for December delivery, the most actively traded benchmark contract, settled 1.2% lower at US$3,768.10, reflecting profit-taking and

expectations that the recent rally may cool despite spot prices holding near record highs.

Monetary Policy Adds Fuel to the Rally

The Federal Reserve remains at the centre of gold’s trajectory. Chair Jerome Powell signalled caution on further monetary easing this week, balancing concerns over a weakening labour market against stubborn inflationary pressures. Market participants are still pricing in two additional 25-basis-point cuts this year — one in October with a 94% probability and another in December with a 77% probability, according to CME FedWatch data.

“Gold is benefitting from lower U.S. funding costs, but the uncertainty around how quickly the Fed moves creates volatility of its own,” said David Barrett, CEO of EBC Financial Group (UK) Ltd. “Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making it more attractive in periods of monetary easing. Investors should expect sharp swings whenever market expectations diverge from Fed signals.”

Geopolitical Risks Amplify Safe-Haven Demand

The geopolitical backdrop has further reinforced gold’s role as a hedge. NATO warned Russia this week that it would employ “all necessary tools” to defend itself, while U.S. President Donald Trump suggested Ukraine could reclaim occupied territory. Such tensions, alongside broader instability, often drive investors toward gold because it retains value during crises and is less tied to government credit risk. Heightened uncertainty also fuels inflationary pressures and disrupts currencies, both of which make gold more attractive.

“Markets often treat geopolitical shocks as a straight line up for gold, but history shows that sharp rallies are frequently followed by corrections when tensions ebb,” Barrett noted. “Safe-haven demand is powerful but can be unstable, as seen in 2022 when gold spiked on the Ukraine conflict before quickly retreating.

Outlook: Elevated Prices, Heightened Volatility

Analysts suggest gold could consolidate above US$3,750 in the near term, with potential resistance forming near US$3,900. Other precious metals have also gained, with silver up 0.5% to US$44.23 per ounce, platinum rising to US$1,483.53, and palladium at US$1,225.46.

“Gold remains in a sweet spot of lower rates, geopolitical turbulence, and investor caution on equities,” Barrett explained. “But the combination of these forces is also what makes the market more unpredictable. The focus now should be less on chasing records and more on managing risk with discipline.”

Disclaimer: This article reflects the observations of EBC Financial Group (SVG) LLC and is for reference only. It is not financial or investment advice. Trading in Contracts for Difference (CFDs) and foreign exchange (FX) involves significant risk of loss, potentially exceeding your initial investment. Before trading, you should carefully consider your financial status, investment objectives, expertise, and risk appetite and consult an independent financial advisor if necessary, as EBC Financial Group and its global entities are not liable for any damages arising from reliance on this information.