The Fed's expectation of a rate cut in December is heating up, driving gold prices to rebound.

According to Deep Tide TechFlow news on November 25, as reported by Jin10 data, Everbright Futures commented: On November 24, COMEX gold surged significantly at the end of trading, closing at $4133.8 per ounce, an increase of 1.33%. The domestic SHFE gold night trading opened high and fluctuated, closing at 934.74 yuan per gram, an increase of 0.541%. As the instability of the U.S. financial market becomes more pronounced, the Fed has shown dovish remarks regarding a rate cut in December. Last night, San Francisco Fed President Daly expressed support for a rate cut at next month’s meeting, citing the greater likelihood of a sudden deterioration in the job market, which is more difficult to manage than soaring inflation. Coupled with previous support for a rate cut from the New York Fed President, this has sharply increased the market's expectations for a December rate cut, briefly easing concerns about liquidity issues, stabilizing U.S. stocks, weakening the dollar, and resulting in a strong short-term performance for gold. On the geopolitical front, the U.S. and Russia proposed a 28-point “peace protocol” regarding the Russia-Ukraine issue, with significant differences among parties. Ukraine subsequently stated that the U.S. and Ukraine finalized a new version of the peace draft, while Russia claimed that the European proposal was unconstructive, and the U.S. proposal could, in principle, serve as the basis for a peace agreement. The short-term expectation of a rate cut has boosted gold's strong performance; however, with signs of easing in the Russia-Ukraine geopolitical situation and the Fed's passive rate cuts lacking sustainability, gold may maintain a high-level fluctuation trend in the future. In terms of operations, since the future trend of gold prices remains unclear, investors should take a wait-and-see approach, or buy the dips from the perspective of asset allocation.