Analysis: If Fed rate cut expectations fall through, gold prices may come under pressure

According to Jinse Finance, Vincenzo Vida, Global Chief Investment Officer of WS Group, stated that one of the main drivers behind the recent surge in gold prices is the market's expectation of further interest rate cuts by the Federal Reserve, which has increased gold's attractiveness relative to fixed-income assets. Recently, the price of gold surpassed the $4,000 per ounce mark for the first time, with an annual increase of over 50%. Silver has also seen a significant rise, even outperforming gold so far this year. However, if circumstances change, such as inflation not slowing down as expected, gold prices may come under pressure.