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The FOMC just confirmed what we already knew — we’ve entered a new easing cycle.
While Powell & Co. only cut a quarter point, the dot plot shows expectations of one or two more cuts this year. And, as I’ve been saying, the markets realize that Trump’s guy will be in Powell’s chair next year…and whoever that is will be driving rates far lower.
This is precisely why Western investors have been flocking to metals and miners, and particularly gold, in recent weeks.
In fact, if you’re looking for the starting gun for the latest rally, you need look no further than Jerome Powell’s Jackson Hole speech, when he essentially conceded that a cut was coming.
<img src="https://www.moneymetals.com/uploads/content/Gold-Jerome-Powell-Jackson-Hole-Speech-Brien-Lundin-Money-Metals.png" width="800" height="492" alt="" style="display: block; margin-left: auto; margin-right: auto;" />
And if you doubted that it was Western investors and traders who were <a href="https://www.moneymetals.com/news/2025/07/21/bottoms-up-004218" rel="noreferrer">pumping up the gold price since then</a>, the proof of their involvement came in the wake of Powell’s press conference, when his comments softening the cut decision sent speculators rushing to take profits.
<img src="https://www.moneymetals.com/uploads/content/Gold-Spot-US-Dollar-Brien-Lundin-Money-Metals.png" width="800" height="533" alt="" style="display: block; margin-left: auto; margin-right: auto;" />
As you might expect, I view this as a simple case of profit-taking, and one that shouldn’t last long. You can see that gold is already rebounding from the sell-off lows.
The bottom line is that, for irrefutable economic and fiscal reasons — and now a political one — a new easing cycle has begun.
No one knows precisely what lies ahead, but we can be confident that we’ll want to own gold going into it.
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