I. Core Drive Analysis

The Fed cut rates by 25 basis points to the 4.00%-4.25% range on September 18, as expected. This reduction lowers the opportunity cost of holding gold, increasing its relative value as a non-interest-bearing asset.

The Fed expects another 50 basis points cut in 2025 and plans to maintain a loose policy path in the coming years, which is positive for gold in a long-term low-interest environment. Powell stated that the policy focus is shifting from inflation to employment, hinting at more measures to support economic growth.

However, Powell emphasized that the rate cut is a risk management decision and does not require rapid adjustments, which could limit short-term gold price gains. With mixed factors at play, the safe-haven demand for gold remains solid.

II. Gold Technical Layout Strategy

Gold price broke through the 3769.00 resistance strongly during the Asia session, reaching a high of 3779.25, and is now around 3776.00. On the 1-hour chart, the double moving averages are in a bullish arrangement, with the trend leaning strong.

Operation Suggestion:

Buy on pullback to the 3771.50 support level.

Stop loss: Below 3750.00.

Take profit: Around 3800.00.

III. Silver Technical Layout Strategy

Silver dipped to a low of 43.664 during the Asia session and then reversed in a V-shape, now trading around 44.200. On the 1-hour chart, the double moving averages are in a bullish arrangement, with a high probability of upward movement.

Operation Suggestion:

Buy on pullback to the 44.150 support level.

Stop loss: Below 43.600.

Take profit: Around 45.000.

Risk Warning

Any investment involves risks, including the risk of capital loss. This suggestion does not constitute specific investment advice; investors should make decisions based on their own risk tolerance, investment goals, and market conditions.