---
title: "Rate hikes cool things down, rate cuts heat things up."
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/42415346.md"
description: "Still our previous view, looking at the current CPI, PCE, PPI, and employment data, a rate hike is unlikely, and even the possibility of a rate cut is emerging. This will continue to be favorable for gold in the future. We will gradually build a position in five tranches. In terms of allocation, we choose gold over silver, and the gold-silver ratio will also widen later. Moreover, it's now clearly noticeable that gold is very sensitive to rate cut expectations. Once rate cut expectations emerge, it will push gold to stop falling and stabilize..."
datetime: "2026-07-03T06:07:02.000Z"
locales:
  - [en](https://longbridge.com/en/topics/42415346.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/42415346.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/42415346.md)
author: "[Bruce投资笔记](https://longbridge.com/en/profiles/17482016.md)"
---

# Rate hikes cool things down, rate cuts heat things up.

Still our previous view: looking at the current CPI, PCE, PPI, and employment data, a rate hike is unlikely. There might even be signs of a rate cut emerging, which will continue to benefit gold. We will gradually build a position in five tranches. In terms of allocation, we choose gold over silver, and the gold-to-silver ratio will also widen later.

Moreover, it's now clearly noticeable that gold is highly sensitive to rate cut expectations. Once signs of a rate cut emerge, it will push gold to stop falling and stabilize.

$Gold(IN00380.US) $SPDR Gold Shares(GLD.US) $iShares Gold Trust(IAU.US)

$Silver(IN00270.US)

### Related Stocks

- [07299.HK](https://longbridge.com/en/quote/07299.HK.md)
- [GLD.US](https://longbridge.com/en/quote/GLD.US.md)
- [IN00380.US](https://longbridge.com/en/quote/IN00380.US.md)
- [IAU.US](https://longbridge.com/en/quote/IAU.US.md)
- [IN00270.US](https://longbridge.com/en/quote/IN00270.US.md)

## Comments (2)

- **wait for · 2026-07-03T09:25:34.000Z**: Why not choose silver
  - **Bruce投资笔记** (2026-07-03T13:14:21.000Z): It can be argued from multiple perspectives that at the current stage: silver is less worthy of allocation than gold, mainly for the following reasons:1. It is still under pressure; gold is performing