The Federal Reserve has finally cut interest rates. The moment for a global high-stakes bet on the gold price has arrived.

"Perspective" is a newly launched lightweight data graphic column by 36Kr - using data to analyze trends and pictures to present key points.

"Talk is Cheap. Show me the data."

Author: Huang Yida

On September 17th local time, the Federal Reserve announced a 25 - basis - point cut in the target range for the federal funds rate. The price of gold has accelerated its rise recently, continuously hitting new historical highs. Historically, interest rate cuts lead to loose liquidity and a weaker US dollar, which will most likely catalyze the rise of the gold price.

Chart by 36Kr

In the long run, against the backdrop of increasing geopolitical risks, central banks around the world have significantly increased their gold holdings since 2022. As a result, the supply - and - demand relationship has gradually become the most core factor affecting gold pricing. Currently, central banks still have a strong willingness to buy gold, which will provide stable support for the gold price in the future.

Chart by 36Kr

Chart by 36Kr

In addition, the emergence of gold - backed stablecoins has successfully extended the demand for gold to the digital finance field. With the continuous expansion of gold - backed stablecoins, the incremental demand generated by related transactions has also become an important marginal force driving up the gold price.

Chart by 36Kr

However, it should be noted that after the continuous sharp rise of the gold price in the previous period, when the interest - rate cut is implemented and the positive factors are realized, some investors with substantial profits may choose to sell gold to lock in their gains. Therefore, there is also a certain risk of a short - term correction in the gold price.