Breaking through 2580! The market is experiencing a "golden tsunami", and the expectation of interest rate cuts is the strongest driving force.
①Spot gold prices strengthened by more than $20 in the short term, hitting a high of $2583.36 per ounce, setting a new historical high; ②Traders have raised the probability of the Federal Reserve cutting interest rates by 50 basis points next week from 14% yesterday to 41%. Former New York Fed President Dudley said during the day, "The reasons for cutting 50 basis points are very sufficient."
On the eve of the September interest rate meeting, a report ignited expectations of a 50 basis point interest rate cut, causing stocks, gold, and bitcoin to all rise.
"New Federal Reserve Communications Agency" article stated that Federal Reserve officials are considering whether to cut 25 or 50 basis points. Futures linked to the Federal Reserve's policy rate indicate that traders on Friday expect the probability of a 50 basis point rate cut by the Federal Reserve to rise to 47%, with a close to 50/50 chance, while the probability estimated on Thursday was only 28%.
What on earth happened?! Gold prices soared over $80 this week, and fears of the Fed triggering next week's market. How to trade gold?
This week, spot gold has seen a major outbreak, with the weekly gold price skyrocketing by over $80, reaching a level of $2586 per ounce, hitting a new record high. FXStreet analyst Eren Sengezer wrote that gold has accumulated a bullish momentum this week, setting a new historical high. Recent technical trends have highlighted the dominant position of buyers. The Federal Reserve will announce the interest rate decision next week and release the revised dot plot.
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Expectations of interest rate cuts becoming a "reassurance pill"! Safe-haven funds are flowing into bonds and gold.
Global investors sold stock funds for the second consecutive week in the week ending September 11th.