Continuing to "sprint" ahead of the Fed's rate cut expectations, industry insiders say that the gold price adjustment may be a good buying opportunity window

During the Federal Reserve interest rate meeting in December 2023, Federal Reserve Chairman Powell stated that the monetary policy in 2024 will be marginally loose, leading to further market expectations of a Fed rate cut. At the same time, precious metal prices represented by international gold have been steadily rising. Industry insiders indicate that the current rise in international gold prices is mainly driven by expectations of the Federal Reserve's monetary policy. Although the rate cut expectations have been repeatedly postponed, the general direction towards a rate cut by the Federal Reserve is certain, prompting the market to continue to anticipate a rate cut. In addition, considering the upcoming election, the U.S. government will continue to increase capital expenditure to maintain high economic growth. Historical experience shows a strong synchronicity between gold prices and the U.S. fiscal deficit, indicating that there is still room for gold prices to rise in the future. (China Securities Journal)