On Monday, gold kicked off the trading session with a spectacular rally. The market opened with a surge, with prices heading straight for the 4390 level. The aggressive upward momentum clearly shows that market enthusiasm has been truly ignited.

Behind this wave of gains, there are actually two clear logical chains at work. First is the continuous inflow of safe-haven funds—recurring geopolitical tensions worldwide have led many investors to reduce their risk appetite, naturally turning their attention to traditional safe-haven assets like gold. The strong buying pressure from funds entering the market is a direct driver of the rapid price increase.

But more importantly, macroeconomic support is playing a crucial role. Expectations for a new round of interest rate cuts by the Federal Reserve are growing stronger, which is almost a death knell for gold’s attractiveness—lower interest rates mean the opportunity cost of holding gold decreases, prompting institutional investors and traders to position themselves early. When these two forces combine, the foundation for gold’s rise becomes particularly solid.

Within the broader asset allocation framework, the recent correlation between non-traditional assets like gold and Bitcoin is worth noting. When traditional finance faces uncertainty, each of these assets has its own strategic value.