On December 10, COMEX gold surged sharply in late trading, closing at $4,258.3 per ounce, up 0.52%. Meanwhile, the domestic SHFE gold opened lower and fluctuated during the night session, settling at 954.76 yuan per gram, down 0.12%.
On Wednesday, December 10 (U.S. Eastern Time), the Federal Reserve announced after its FOMC meeting that it would lower the target range for the federal funds rate from 3.75%-4.00% to 3.50%-3.75%. This marks the Fed's third consecutive rate cut in FOMC meetings, each by 25 basis points, totaling a 75-basis-point reduction this year. Since September last year, the cumulative easing cycle has reached 175 basis points. The updated dot plot revealed that the Fed's rate path projections remain unchanged from three months ago, still anticipating one 25-basis-point cut next year, signaling a slower pace of easing compared to 2024.
The latest rate cut and the hint at slower action next year were largely in line with market expectations. However, a notable change in the statement was the explicit mention of short-term Treasury purchases, with plans to buy $40 billion in short-term bonds over the next 30 days. Coupled with Fed Chair Jerome Powell's slightly more dovish-than-expected remarks, market risk appetite rebounded. Against a weaker U.S. dollar, gold prices are expected to remain strong in the near term.
Source: Wind, EB Futures Research Institute Disclaimer: The information in this report is sourced from publicly available data. The accuracy, reliability, and completeness of this information are not guaranteed, and the views, conclusions, or suggestions provided are for reference only. They do not constitute recommendations for specific products or trading decisions. Investors bear full responsibility for any investment decisions made based on this report.
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