The Fed's interest rate reduction measures are to lower the interest rate of the US dollar and the interest rate of deposits and loans. This is an act of suppressing the dollar, and the dollar index will fall. Because the trend of gold is contrary to the dollar, gold begins to rise; However, the rise of gold can not be judged by the Fed's interest rate cut alone, but also related to the holdings of gold and international risk aversion. First of all, we must understand that the value of a commodity depends on its supply and demand. If it is a seller's market, commodity prices may be reduced; If it is a buyer's market, commodity prices will rise. In fact, in a word, things are rare, just like our national treasure panda. Because it is rare, it is called the first-class protected animal, which is the symbol of China. Therefore, when the supply of gold in the market increases, the price of gold will fluctuate and become lower. When the market demand for gold increases, the price of gold will rise, but gold itself has the ability to preserve value, so the price of gold generally fluctuates in a small range.