Rate hikes cool things down, rate cuts heat things up.

Still our previous view: looking at the current CPI, PCE, PPI, and employment data, a rate hike is unlikely. There might even be signs of a rate cut emerging, which will continue to benefit gold. We will gradually build a position in five tranches. In terms of allocation, we choose gold over silver, and the gold-to-silver ratio will also widen later.

Moreover, it's now clearly noticeable that gold is highly sensitive to rate cut expectations. Once signs of a rate cut emerge, it will push gold to stop falling and stabilize.

$Gold(IN00380.US) $SPDR Gold Shares(GLD.US) $iShares Gold Trust(IAU.US)

$Silver(IN00270.US)