Fed rate cut bets weaken the US dollar, pushing gold to $3700 on Tuesday.

On Tuesday, as investors bet that the Federal Reserve will cut interest rates this week and assess the possibility of further monetary policy easing in the coming months, the US dollar index fell to its lowest level in over 10 weeks and ultimately closed down 0.71% at 96.65. The benchmark 10-year Treasury yield closed at 4.0350%, while the 2-year Treasury yield sensitive to the Federal Reserve policy rate closed at 3.5120%. On Tuesday, spot gold prices broke through the $3700 per ounce mark for the first time, hitting a historical peak of $3702.93 during trading and ultimately closing at $3689.60. This milestone rise is not accidental, but a direct reaction of the market to the expectation of the Federal Reserve's interest rate cut, the sharp decline of the US dollar index, and the resonance of multiple factors such as geopolitical risks, central bank gold buying frenzy, and US dollar weakness. Due to the increasing pressure on Russian oil production caused by Ukraine's attacks and Israel's airstrikes on the Yemeni port city of Hodeidah, international crude oil prices have risen. WTI crude oil ultimately closed up 2.01% at $64.54 per barrel; Brent crude oil ultimately closed up 1.51% at $68.50 per barrel.