The Federal Reserve's "dovish" tone resonates loudly, igniting a wave of excitement in the precious metals market.
On Thursday morning in Asia, spot gold continued its strong momentum from the previous night, firmly standing above the $4230 mark, as a precious metals rally triggered by the Federal Reserve's interest rate cut intensifies.
With multiple favorable factors resonating, market funds are pouring into safe-haven assets, creating the most explosive market scenario of the year.
The three core driving forces of the overnight market can be described as a "powerful combination."
On the policy front, the Federal Reserve has timely pressed the interest rate cut button, lowering the benchmark rate by 25 basis points to the 3.5%-3.75% range. Although the 10:3 voting result highlights internal divisions within the Federal Reserve, the core signal of the "rate cut landing" is enough to ignite market enthusiasm.
The dollar index plummeted in response, experiencing a single-day drop of 0.6%, marking the largest decline in three months. U.S. Treasury yields also sharply fell, and the removal of dual pressure instantly maximized gold's appeal as a safe haven.
More notably, silver experienced explosive growth, with spot silver breaking through $61 per ounce, reaching a historic high, and the year-to-date increase soaring to 113%, making it the "leading pioneer" in this round of market activity.
Future market focus remains on multiple key variables. Federal Reserve Chairman Powell's statement released key signals, clearly indicating that "the next move is highly unlikely to be an interest rate hike," providing the market with reassurance, but simultaneously downplaying expectations for easing in 2026, adding a touch of uncertainty to the market.
The ongoing escalation of geopolitical risks provides solid support for precious metals. The stalemate in the Russia-Ukraine conflict remains unresolved, and the U.S. has listed certain minerals as "critical," further elevating market risk aversion.
From a technical perspective, after successfully stabilizing above the $4200 key level, the upward channel has opened, and market expectations for the next target of $4300 are growing stronger; the strong pattern of precious metals may continue in the short term.
