China Southern Asset Management Outlook Gold Market Fed Policy Changes and Gold Value

Mondo Finance Updated on 2024-01-24

Recently, the financial market has witnessed a series of dynamic changes, especially in the market. During the week of November 27 to December 1, we observed a slight consolidation in the market as a whole, with the non-ferrous metals index **104%, but compared to this, the performance of the ** sector is relatively more prominent.

An important impetus behind this phenomenon is the recent comments of the Federal Reserve's Christopher Waller. On November 29, he made an important point: if inflation continues to decline steadily, the Fed may consider cutting its benchmark interest rate next spring. It is worth noting that Waller has previously been generally perceived as "hawkish" and inclined to fight inflation with high interest rates. However, his recent statement appears to be even more "** a hint at the possible end of the Fed's rate hike cycle." Waller noted that if inflation continues to decline in the coming months, the Fed will be more confident that inflation is indeed slowing and that this trend will continue, at which point it can start to consider lowering its policy rate.

Signs of this policy shift have had a significant impact on financial markets, especially the ** market. As Treasury yields fell and the dollar weakened further, there was a sharp emergence. This change once again validates the value of ** as a traditional safe-haven asset in times of market turmoil. Against the backdrop of Waller's remarks and expectations that the Fed may ease monetary policy in the future, the decline in U.S. Treasuries and U.S. indices has provided further momentum.

Looking at it more broadly, this move in the market reflects investors' continued focus on the global economic outlook. In an uncertain economic environment, it often becomes a safe haven for investors looking for safety. The current performance of the market, especially in the light of changes in Fed policy expectations, underscores the stability and attractiveness of the market as an asset class.

This article was first published in the interpretation of the financial outlet, if there is **, please indicate the source.

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