Weekly

Last week, the gold price remained stable at 2980 and gained momentum for improvement. The market continues to shift funds to the gold market due to uncertain factors such as Trump's tariff policies and trade wars, highlighting the important role of gold as a safe haven currency. In addition, the market has long expected that the upward trend of gold prices will not end, so the 3000 mark can be easily broken in one fell swoop.

After rebounding above 3000 at the beginning of the week, it continued to stabilize, and investors are waiting for the Federal Reserve's interest rate meeting on Monday. The market has long expected the interest rate to remain unchanged at this meeting, but with the slowdown in the labor market and inflation, everyone hopes that the Federal Reserve will release a dove and provide clearer guidance on the direction of interest rates in 2025 and the cycle of interest rate cuts. As expected, although the interest rate remains unchanged at the mid week meeting, the direction is dovish. It is expected to cut interest rates twice by 0.25 percentage points before the end of the year, and the total interest rate for the year will be reduced by another half percentage point. The chance of interest rate reduction in July or earlier will increase to 100%.

The interest rate clearly stimulated the gold price to break through the peak again, reaching a maximum of $3057.42, which is also the 15th record high since the beginning of this year. On average, there is an opportunity to climb high again every week, which is a typical bull market development. Prior to the weekend, there was profit taking in gold prices, with liquidation pushing them down to below $3000 at one point, but then quickly rebounding to close at $3023.

At present, apart from the overbought pressure on gold prices, the overall news supports the preference for gold prices, and there is a possibility of consolidation and better storage near the $3000 mark. Looking ahead to this week, the United States will release the PCE Price Index, which has implications for inflation levels. If, like the previous CPI, inflation remains moderate, it will increase the Federal Reserve's leverage to cut interest rates, and gold is expected to improve again. Let's take a look at the market situation and refer to each other.