On August 13, after US Treasury Secretary Beshent urged the Federal Reserve to lower borrowing costs, traders increased bets on a Fed rate cut. Gold prices surged during the session before slightly pulling back by the close. At market close, COMEX gold futures rose 0.24% to $3,407.00 per ounce. By the close of the Asian market, the ChinaAMC Gold ETF (518850) gained 0.20%, while the Gold Stock ETF (159562) rose 2.11%.

On the news front, US Treasury Secretary Beshent issued the clearest call for rate cuts from the US government to date, urging the Fed to immediately start a new rate-cutting cycle and stating that US interest rates should be 150 to 175 basis points lower than current levels. He believes the Fed may start cutting rates sooner, with a high likelihood of a 50-basis-point cut in September.

CITIC Futures analysis noted that after the labor market weakened, relatively mild inflation data has cleared the path for rate cuts. Expectations of a 25-basis-point Fed rate cut in September remain steady, and the upward trend for precious metals remains intact. However, in the short term, the synchronized rally in Chinese and US equity markets and improved risk appetite may mean gold prices still need to gather momentum for further gains. Spot gold’s movement below $3,500 has been relatively moderate, but a breakout could lead to amplified volatility.