Tao Ming Securities: A 25BP rate cut will cause a slight drop in gold prices. It is expected that the gold price will break through $2,700 in early next year.

On September 18th, Jin Shi data reported that Bart Melek, an analyst at TD Securities, said that if the Fed opens a loose cycle by reducing interest rates by 25 basis points, it is expected that the price of gold will further decline from the recent record high of $2,589 in the next few days. This is the analyst’s main view. However, Melek opposes a bearish view on gold and believes that if the Fed acts as expected, the price of gold may only experience a small retreat. He predicts that the price of gold will break through the $2700 mark in early 2025.