The market generally expects that the Fed will continue to cut interest rates this year, greatly driving the continuous rise in gold prices.

Jin10 data reported on October 4, the director of the Financial Derivation Investment Research Institute, Wang Hongying, stated that the direct reason for the recent rise in the gold market is due to global gold market investment professionals predicting that the probability of the Fed further cutting interest rates in October exceeds 90%. The Fed's rate cut decision is undoubtedly the key “catalyst” driving the rise in gold prices. The market generally expects the Fed to cut interest rates 1-2 times this year, and this expectation has greatly pushed the continuous rise in gold prices. The impact of these factors on the rise in gold prices is still being released, which is one of the reasons why the market is generally bullish on gold prices. In addition to the Fed's interest rate cut expectations, the continued escalation of geopolitical conflicts has also fueled the rise in gold prices. The U.S. government shutdown has damaged credit and intensified market risk aversion. Meanwhile, the U.S. government announced it would allow the export of long-range missiles to Ukraine with a range of over 1000 kilometers, further escalating geopolitical military conflicts. Israel's interception of international aid organizations attempting to provide rescue to Gaza has also directly prompted a significant rise in gold prices. Additionally, Europe's sudden announcement of a 50% tariff on imported steel indicates that Europe has officially entered the geopolitical military game, leading to a rapid increase in gold's safe-haven sentiment in the short term.