CITIC Prudential: The recent rise in gold may indeed reflect an amplification of investor sentiment, so there is also the possibility of a "profit-taking" scenario after the Federal Reserve's interest rate cut is implemented

According to Gu Fan Ding, the fund manager of CITIC Prudential Global Commodity Theme Fund, the prices of any financial asset operate in fluctuations, and excessive rises or falls usually trigger adjustments. Regarding gold, the recent increase may indeed reflect an amplification of investor sentiment, so there is also the possibility of a "profit-taking" scenario after the Federal Reserve's interest rate cut is realized. For investors, there are three signals worth paying attention to. First, the Federal Reserve's interest rate cut will have a significant impact on the capital market; if there is no rate cut in September or if the stance is hawkish, short-term event traders may concentrate on selling gold. Second, if the resilience of the U.S. economy exceeds expectations, market risk appetite may increase, leading to a reduction in allocations to safe-haven assets like gold. Third, from a technical perspective, if it breaks below the support level, it may trigger more selling pressure. He stated that for ordinary investors, there is no need to monitor the market every day, but it is advisable to pay attention to market information at these key points and prepare in advance