The trend of gold has been very strong recently. You can refer to the following paragraph for interpretation.
Analysts believe that this round of rise in international gold prices is mainly due to the rising market expectations for an interest rate cut by the Federal Reserve. As U.S. inflation falls from its high point, the market generally believes that the Fed's interest rate hike cycle may be over and will soon turn to interest rate cuts. At the same time, risk aversion caused by intensified geopolitical conflicts and the decline in the credibility of the U.S. dollar-based credit currency system are also important factors driving this round of gold price increases.
Xia Yingying, a nonferrous metals analyst at Nanhua Futures, believes that the current credibility of the US dollar-dominated credit currency system has declined, prompting many central banks around the world to adjust their foreign exchange reserve structures and increase their gold reserve holdings. At the same time, affected by the recently released weak economic and employment data in the United States, expectations for a rate cut by the Federal Reserve in June have been strengthened again, and U.S. bond yields have shown a downward trend, which has also boosted gold valuations.
Wu Dan, a researcher at the Bank of China Research Institute, said that international gold prices usually have a seesaw relationship with the trend of the US dollar. When the US dollar is strong, gold prices fall, and when the US dollar is weak, gold prices rise. Since March, the overall performance of macroeconomic data in the United States, including PMI (purchasing managers index), unemployment rate, etc., has weakened. In addition, Federal Reserve Chairman Powell made it clear that "an interest rate cut may be appropriate at some point this year," causing the U.S. dollar index to fall. , started this round of gold price market. At the same time, against the backdrop of increasing global uncertainty, market demand and enthusiasm for buying gold as a safe haven are at a high level.
