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Gold prices reach new peaks once more

Gold ascended to a new record peak prior to the Federal Reserve's interest rate decision, while profit-taking activities were witnessed in various DAX equities.

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2025 September 17 . 8:05 PM

2 min read

Gold prices reach new peaks once more

The German stock market experienced a weaker trend ahead of the US Federal Reserve's interest rate decision, with the DAX trading lower. Meanwhile, gold continued its impressive performance, outperforming all other asset classes this year.

The gold price has risen by 0.5% to over $3,700 per ounce, benefiting from central bank purchases and ongoing uncertainty in both financial markets and geopolitics. The excellent mood on the gold market, as indicated by the investor survey by Sentix, suggests that this trend may continue.

The rise in gold's value is also attributed to a mix of upcoming interest rate cuts, weaker labor market data, and milder inflation, as stated by Berenberg in its Markets Monitor. Lower interest rates are beneficial for gold as they reduce the cost of holding it.

In the bond market, the yield on ten-year German government bonds rose slightly to 2.71%, while the yield on ten-year French government bonds increased to 3.50%. The benchmark Bund future fell by 0.1% to 128.59%. However, the euro strengthened against the dollar by 0.4% to $1.1809.

The stock market declines were not limited to Germany. Deutsche Börse, Deutsche Bank, and Commerzbank all fell by 1.9%, 1.7%, and 1.8%, respectively. Insurance stocks Allianz and Münchener Rück also recorded losses.

However, not all stocks saw a decline. Atoss Software gained significantly, trading 4.6% higher. Analysts at Jefferies believe the recent decline in the software stock SAP is unjustified, with some, like Metzler Bank, even issuing a buy recommendation for the company.

In a notable move, Rheinmetall is acquiring the military division of Lürssen Werft, thereby entering the marine business. This move has received positive responses from DZ Bank and Deutsche Bank, with DZ Bank raising the price target from 1985 to 2240 euros and Deutsche Bank maintaining a buy rating with a target of 1950 euros.

With the US interest rate decision looming, all eyes are on the Fed's decision on Wednesday. Many market participants expect gold to consolidate after the US interest rate cut, but the current market trends suggest that gold may continue its impressive performance.