The Federal Reserve's dovish meeting signals a clear stance of easing, providing strong and multi-dimensional bullish support for gold prices. The specific impacts can be analyzed from the following two major aspects:

1. Direct Drivers: Rate cuts implemented alongside bond purchases, putting pressure on the US dollar and US Treasury yields
1. Easing cycle continues to enhance the attractiveness of non-interest-bearing assets: This rate cut of 25 basis points marks the third consecutive meeting with a rate cut, despite some members preferring to hold rates steady, the policy easing direction is clear. Lower interest rates directly weaken the yield attractiveness of the dollar, with US Treasury yields falling in tandem. As a typical non-interest asset, the cost of holding gold drops significantly, and investment appetite increases markedly.
2. Liquidity injection further weakens the US dollar’s position: The Federal Reserve announced that from December 12, it will implement a $40 billion Treasury purchase plan within 30 days. This move is equivalent to injecting substantial liquidity into the market, further diluting the dual advantage of the dollar’s “safe-haven + yield,” indirectly boosting gold’s allocation value and market demand.
2. Mid-term support: The combination of interest rate outlook and economic inflation consolidates gold’s dual core attributes
1. Clear interest rate path, stable medium-term upward logic: The dot plot maintains expectations of one rate cut in the next two years, indicating that policy will not quickly shift to tightening, and gold’s mid-term upward trend based on the loose monetary cycle remains intact.
2. The contradictory combination of economic growth and inflation boosts gold demand in both directions:
◦ Economic aspect: The Fed raised its GDP growth forecast for the next three years but also emphasized high uncertainty in the economic outlook and ongoing downward risks in employment. Market concerns about economic growth will activate gold’s safe-haven properties, attracting risk-averse funds.
◦ Inflation aspect: The Fed acknowledged that current inflation remains high, while lowering its inflation forecast for next year. This combination preserves gold’s anti-inflation value while easing market fears of “high inflation forcing interest rate hikes,” providing moderate bullish support for gold.
In the short term, the dense easing signals released at this meeting will directly drive gold to continue its bullish trend after breaking through $4230. From a medium-term perspective, the continuation of the easing cycle, persistent economic uncertainties, and a moderate inflation environment will enable gold’s triple attributes of safe-haven, anti-inflation, and non-interest assets to continue exerting influence. The Fed’s clear easing signals in this dovish meeting provide strong and multi-dimensional bullish support for gold prices, which can be analyzed from the following two major dimensions:
1. Direct Drivers: Rate cuts implemented alongside bond purchases, putting pressure on the US dollar and US Treasury yields
1. Easing cycle continues to enhance the attractiveness of non-interest-bearing assets: This rate cut of 25 basis points marks the third consecutive meeting with a rate cut, despite some members preferring to hold rates steady, the policy easing direction is clear. Lower interest rates directly weaken the yield attractiveness of the dollar, with US Treasury yields falling in tandem. As a typical non-interest asset, the cost of holding gold drops significantly, and investment appetite increases markedly.
2. Liquidity injection further weakens the US dollar’s position: The Federal Reserve announced that from December 12, it will implement a $40 billion Treasury purchase plan within 30 days. This move is equivalent to injecting substantial liquidity into the market, further diluting the dual advantage of the dollar’s “safe-haven + yield,” indirectly boosting gold’s allocation value and market demand.
2. Mid-term support: The combination of interest rate outlook and economic inflation consolidates gold’s dual core attributes
1. Clear interest rate path, stable medium-term upward logic: The dot plot maintains expectations of one rate cut in the next two years, indicating that policy will not quickly shift to tightening, and gold’s mid-term upward trend based on the loose monetary cycle remains intact.
2. The contradictory combination of economic growth and inflation boosts gold demand in both directions:
◦ Economic aspect: The Fed raised its GDP growth forecast for the next three years but also emphasized high uncertainty in the economic outlook and ongoing downward risks in employment. Market concerns about economic growth will activate gold’s safe-haven properties, attracting risk-averse funds.
◦ Inflation aspect: The Fed acknowledged that current inflation remains high, while lowering its inflation forecast for next year. This combination preserves gold’s anti-inflation value while easing market fears of “high inflation forcing interest rate hikes,” providing moderate bullish support for gold.
Short-term, the intense easing signals from this meeting will directly drive gold to continue its bullish run beyond $4230; from a medium-term perspective, the continuation of the easing cycle, ongoing economic uncertainties, and a moderate inflation environment will keep gold’s safe-haven, anti-inflation, and non-interest attributes actively at play. The clear easing stance in this dovish Fed meeting provides strong and multi-dimensional bullish support for gold prices, which can be analyzed from the following two major aspects: