RE: LeoThread 2025-08-10 15:56

Part 7/9:

The potential for rate cuts has substantial implications for markets. Lower interest rates typically reduce borrowing costs, stimulate economic activity, and weaken the appeal of bond markets—shifting investor focus toward alternative assets like gold. When real interest rates turn negative, gold often thrives as a safe haven and inflation hedge.

Market sentiment responded swiftly: gold prices jumped approximately $80 on the rumor of impending rate cuts. This reaction underscores gold's position as a barometer for monetary policy shifts and economic uncertainty. If future data confirms mounting economic weakness and further rate reductions, gold could surge past $3,500 per ounce, marking a new rally high.

The Broader Economic and Political Landscape