Raising interest rates is the central bank's strategy to reduce market liquidity. By raising interest rates, the central bank can increase bank deposits, reduce market investment and enhance the value of the local currency. If the Fed announces a rate hike, it means that the US dollar will appreciate. If the US dollar appreciates, investors will increase their investment in the US dollar, thus reducing their investment in gold. The number of people and funds investing in gold has decreased, which will inevitably lead to a decline in the price of gold.

2. The impact of the Fed's interest rate cut on gold.

Cutting interest rates is the central bank's strategy to increase market liquidity. By cutting interest rates, the central bank can reduce bank deposits, increase market investment and reduce the value of the local currency. If the Fed announces a rate cut, it means that the dollar will depreciate, and investors will reduce their investment in the dollar, thus increasing their investment in gold. The increase in the number of people and funds investing in gold will inevitably lead to an increase in the price of gold.