Fed rate cut hopes boost gold, weaken USD, hitting 2-week high.

Last Friday, as investors increased their bets on the Federal Reserve cutting interest rates in December and the US holiday season made liquidity scarce, the US dollar index ultimately closed down 0.05% at 99.48 points, marking its worst weekly performance since the end of July; The benchmark 10-year Treasury yield ultimately closed at 4.0180%, while the 2-year Treasury yield sensitive to the Federal Reserve policy rate closed at 3.5020%. Spot gold surged strongly last Friday (November 28th), rising 1.5% and reaching a two-week high of $4226.56 per ounce, ultimately closing at $4219.20 per ounce. From a monthly perspective, gold prices rose 5.4% in November, marking the fourth consecutive month of increase and demonstrating the market's continued preference for gold. On Monday (December 1st) during the Asian session, spot gold continued to rise, hitting a new high of $4230.41 per ounce at one point. This continuous upward trend is not accidental, but is supported by both macroeconomic environment and monetary policy expectations. Investors see gold as a shield against uncertainty, especially in anticipation of a slowdown in economic growth, making its non yield nature particularly attractive. Due to investors weighing the geopolitical risk premium of the oil market against the backdrop of prolonged negotiations between Russia and Ukraine, international crude oil has recorded its longest monthly decline since 2023. WTI crude oil ultimately closed down 1.06% at $58.56 per barrel; Brent crude oil ultimately closed down 0.99% at $62.89 per barrel.