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BOCHK Sees Relatively Higher Chance of Fed Rate Cut at Mid-2026, Gold Price Incline in Mid-to-long Term, but Volatility to Intensify
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The Fed kept interest rates unchanged at its first monetary policy meeting of 2026. Zhang Shiqi, Director of Wealth Strategy and Analysis Department at BOCHK, believed that the post-meeting statement reflects the Fed's slightly more optimistic outlook on the US economy. Hence, it is in no rush to cut interest rates in the short term. The pace of subsequent rate cuts will depend on economic data performance. She anticipated that, given current US employment conditions and gradually easing inflation, the Fed retains room for rate cuts, with a relatively higher probability of rate cuts occurring around mid-2026. As for gold, driven by allocation demand from global central bank gold purchases and safe-haven factors, gold has long-term investment value. Gold prices are expected to incline over the medium to long term, potentially reaching new highs, though volatility will increase significantly. Investors should monitor periodic corrections during the uptrend, and adopt a long-term allocation strategy to capitalize on these corrections for phased accumulation, avoiding blind purchases at high prices. AAStocks Financial News Website: www.aastocks.com |
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