The Federal Reserve's interest rate meeting has concluded! Maintaining unchanged rates has become the consensus. Institutions: Gold prices face short-term pressure | Homebody Finance

Ask AI · How will Trump’s pressure to cut interest rates affect the long-term value of precious metals?

【Homebody Finance | Expert Face-to-Face】The Federal Reserve will hold a monetary policy meeting from March 17 to 18, and maintaining interest rates unchanged has become the market consensus. Institutions say that precious metals are under short-term pressure, but their medium- and long-term allocation value is highlighted.

Guoxin Futures believes that, in the short term, expectations of high interest rates will continue. If this meeting signals a cautious stance, it will further increase the opportunity cost of holding precious metals, directly suppressing their prices.

Guoxin Futures analysis indicates that the US dollar index remains strong. After returning to the 100 level, the attractiveness of dollar-denominated precious metals declines. In the long term, if the US-Iran conflict persists, oil prices stay high, and the US economy faces “stagflation,” the inflation-hedging properties of precious metals will be fully realized; combined with Trump’s administration pressuring to cut interest rates, precious metals will once again present attractive allocation opportunities.

** The opinions expressed are for reference only and do not constitute investment advice. Investing involves risks; please proceed with caution.**

(Produced by Zheng Zheng, edited by Dong Xiangyi, Homebody Finance Production)

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