September 25th, due to weak US data strengthening the market's confidence in a more significant interest rate cut, gold rose to a new historical high after jumping 1% yesterday, while silver approached its highest point in four months. As of the close, spot gold was reported at $2,654.39 per ounce, having previously set a record high of $2,655.30.

Yesterday, the US released this month's consumer confidence index report, which saw the largest drop in three years. The price of gold rose by 0.3%, surpassing $2,665 per ounce, breaking the historical high set on Tuesday. Silver surged 4.6% on Tuesday, marking the largest one-day increase in four months.

Currently, the market widely anticipates that the Federal Reserve will continue to cut interest rates before the end of the year to address potential economic and employment pressures. Swap traders have increased their bets on the Federal Reserve cutting rates by more than 0.75% this year. Powell may hope to achieve a soft landing for the economy through interest rate cuts, bringing opportunities to credit-sensitive industries such as real estate and manufacturing.

Logically, lower interest rates are beneficial to non-interest-bearing assets like gold and silver, leading to an increase in the price of precious metals priced in US dollars. In addition, both gold and silver have characteristics of currency hedging, which makes them more favored by investors in a loose monetary environment.

Observing the trend, the fluctuations of gold and silver are basically consistent, but since silver can also be used as an industrial product, it is more affected by the economic cycle. Therefore, after China introduced a series of economic "heavy measures" on Tuesday, the trend of silver was boosted.

Standard Chartered Bank stated: "In the past few weeks, the main driving force for silver has been the rise in gold prices—yesterday, after the release of the weak consumer confidence report, the expectation of interest rate cuts heated up again, pushing up gold prices. However, after China launched a broad stimulus plan, the rebound in industrial metals is the main driving force for the next rise in silver."

This year, precious metals have entered a "surging mode." Gold has soared by nearly 30%, and silver has risen by 35%. Strong purchases by central banks and the intensification of geopolitical tensions have supported the demand for gold as a safe-haven asset. The market is now turning its attention to the US election, which is less than six weeks away and could be a significant historical moment affecting the financial market.

As of press time, spot gold continued to set new highs, temporarily reported at $2,665.25 per ounce, and then rose by 0.2% to $2,662.77. The Bloomberg Dollar Spot Index changed little after falling 0.5% the previous trading day.

UBS Group stated that due to the significant rebound in gold, silver has attracted attention, especially as investors are looking for opportunities to buy on the rise. The trend of industrial commodities may also provide additional support, and we maintain our bullish outlook on silver; we believe that under the environment of rising gold prices, the Federal Reserve's loose policy, and the expected deficit in the silver market, silver's performance will be even better.

Cinda Futures stated that under the background of significant interest rate cuts, trading the acceleration of interest rate cuts and economic downturn, the US dollar index and US Treasury yield fell, coupled with the warming of market sentiment, which is good for gold prices. At the same time, geopolitical conflicts continue, and in the long term, under the influence of many uncertain factors such as deglobalization and geopolitical risks, there is still support for gold prices in the context of interest rate cuts in the medium to long term.

Looking forward, investors are waiting for more US data to be released later this week, including the personal consumption expenditure index and the number of unemployment benefit claims, to further indicate the loose policy that the Federal Reserve may adopt.