Gold prices rebounded as expectations for a December rate cut by the Federal Reserve intensified.

Everbright Futures commented that COMEX gold prices surged significantly in the late session, closing at $4133.8 per ounce, a gain of 1.33%. Domestic SHFE gold opened higher and fluctuated in the night session, closing at 934.74 yuan per gram, a gain of 0.541%. As instability in the US financial markets became more apparent, the Federal Reserve adopted a dovish stance on a December rate cut. Last night, San Francisco Fed President Daly expressed support for a rate cut at next month's meeting, arguing that a sudden deterioration in the job market was more likely and more difficult to manage than soaring inflation. Combined with previous statements from the New York Fed President supporting a rate cut, this significantly increased the probability of a December rate cut, temporarily easing market concerns about liquidity. US stocks stabilized, the dollar weakened, and gold performed strongly in the short term. Geopolitically, the US and Russia proposed a 28-point "peace agreement" on the Russia-Ukraine conflict, with significant differences among the parties. Ukraine subsequently stated that the US and Ukraine had finalized a new draft peace agreement, while Russia stated that the European proposal was not constructive and that the US proposal could, in principle, serve as the basis for a peace agreement. Gold prices have been relatively strong in the short term, boosted by expectations of interest rate cuts. However, with signs of easing tensions between Russia and Ukraine and the lack of sustainability in the Fed's passive rate cuts, gold may maintain a high-level consolidation trend in the near future. In terms of trading strategy, given the continued uncertainty surrounding gold's future price movement, investors should remain on the sidelines or consider buying on dips from an asset allocation perspective. (Jinshi)