Everbright Futures: The Federal Reserve is expected to cut interest rates by 75 basis points next year, and gold rebounds to recover US$2,000

On December 13, the price of COMEX gold rose sharply in late trading, closing at $2,043.1 per ounce, an increase of 2.50%. Domestic SHFE gold night trading fluctuated within a narrow range, closing at 469.86 yuan/gram, an increase of 0.05%.

The U.S. core PPI growth rate released on Wednesday night slowed to 2% year-on-year in November, hitting a new low in the past three years. PPI increased by 0.9% year-on-year, the lowest since June. In the early hours of Thursday morning, the Federal Reserve announced its December interest rate decision, holding steady for the third time in a row. The dot plot released showed that this round of interest rate hikes has been completed. Officials expect to cut interest rates by 75 basis points in 2024, and the federal funds rate at the end of next year will be 4.6 %, significantly lower than the 5.1% expected in September. Later, Powell said at a press conference that although the Fed did not rule out the possibility of further raising interest rates at an appropriate time, it had seen reasonable progress in core service inflation and believed that interest rates may have reached or near their peak. Although Powell remains cautious in his words and refuses to declare victory in the fight against inflation, the Fed meeting has begun to discuss the timing of interest rate cuts. Against the background of the Federal Reserve's dovish signal, the dollar plunged, and U.S. stocks, U.S. bonds, and gold rose. In the future, expectations of short-term interest rate cuts may continue to boost gold's rise. There is a high probability that gold will make up for the gains after the opening of domestic early trading. Pay attention to the timing of entry.