Against the backdrop of the Federal Reserve's gradual interest rate cut, how will precious metal prices move?

According to analysis by Hongyuan Futures on April 1st, since the Republican and Democratic parties resolved the debt ceiling issue in June 2023, the size of outstanding public debt in the United States has increased by over $3.11 trillion to $34.58 trillion. Considering that the Federal Reserve Bank's term financing plan BTFP has expired on March 11th and must be repaid within a few weeks, small and medium-sized banks in the United States still face a significant risk of default on commercial real estate debt. Coupled with the Federal Reserve's overnight reverse repo scale dropping to around $872.7 billion on March 27th, the continued issuance of a large amount of bonds by the US Treasury and the Federal Reserve's current rate of reduction will cause a rapid decline in the reserve balance of the Federal Reserve Bank, leading to liquidity issues in the financial market. Therefore, the Federal Reserve is still expected to initiate interest rate cuts and slow down its reduction in balance sheets in the second half of the year, which will support the repeated record high prices of precious metals.