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.
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About EBC Financial Group
Founded in London, EBC Financial Group (EBC) is a global brand known for its expertise in financial brokerage and asset management. Through its regulated entities operating across major financial jurisdictions—including the UK, Australia, the Cayman Islands, Mauritius, and others—EBC enables retail, professional, and institutional investors to access global markets and trading opportunities, including currencies, commodities, CFDs and more.
Trusted by investors in over 100 countries and honoured with global awards including multiple year recognition from World Finance, EBC is widely regarded as one of the world’s best brokers with titles including Best Trading Platform and Most Trusted Broker. With its strong regulatory standing and commitment to transparency, EBC has also been consistently ranked among the top brokers—trusted for its ability to deliver secure, innovative, and client-first trading solutions across competitive international markets.
EBC’s subsidiaries are licensed and regulated within their respective jurisdictions. EBC Financial Group (UK) Limited is regulated by the UK's Financial Conduct Authority (FCA); EBC Financial Group (Cayman) Limited is regulated by the Cayman Islands Monetary Authority (CIMA); EBC Financial Group (Australia) Pty Ltd, and EBC Asset Management Pty Ltd are regulated by Australia's Securities and Investments Commission (ASIC); EBC Financial (MU) Ltd is authorised and regulated by the Financial Services Commission Mauritius (FSC).
At the core of EBC are a team of industry veterans with over 40 years of experience in major financial institutions. Having navigated key economic cycles from the Plaza Accord and 2015 Swiss franc crisis to the market upheavals of the COVID-19 pandemic. We foster a culture where integrity, respect, and client asset security are paramount, ensuring that every investor relationship is handled with the utmost seriousness it deserves.
EBC is a proud official foreign exchange partner of FC Barcelona and continues to drive impactful partnerships to empower communities – namely through the UN Foundation’s United to Beat Malaria initiative, Oxford University’s Department of Economics, and a diverse range of partners to champion initiatives in global health, economics, education, and sustainability.
Michelle Siow
EBC Financial Group
michelle.siow@ebc.com
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