Analyst: If the Federal Reserve Confirms Multiple Rate Cuts, Gold Prices May Reach New Highs

Jinse Finance reported that on Tuesday, driven by a weaker US dollar and clear market expectations that the Federal Reserve will implement interest rate cuts, gold prices once soared past $3,700 per ounce, reaching a historic high. Eric Chia, a strategist at brokerage firm Exness, stated: "If the Federal Reserve's policy guidance fails to meet the market's dovish expectations, gold may face short-term selling pressure. However, as long as the Fed confirms multiple rate cuts, it will support the upward trend in gold prices and may push them to new record highs." In addition, continued gold purchases by central banks, inflows into gold ETFs (exchange-traded funds), and escalating geopolitical tensions have increased market demand for safe-haven and inflation-hedging assets, all of which have jointly supported the recent rise in gold prices.