Gold market analysis

At the beginning of the week, it was Memorial Day in the United States. Market trading was relatively quiet, but news about tariffs still kept coming. The Trump administration highly announced the imposition of EU tariffs two weeks ago, but at the beginning of the week, it extended the deadline again. The exemption period immediately eased the market's risk aversion sentiment. However, due to the Monday holiday, the market did not show a reaction until Tuesday. The gold price dropped below the 3,300 level from the week's high, losing the starting point of the upward trend after the announcement of the EU tariffs two weeks ago.

In the middle of the week, the Federal Reserve released the minutes of its last interest rate meeting. Many governors expressed concerns about the return of inflation. The market interpreted that the United States would maintain high interest rates for a longer period of time. Gold prices dropped in response in the early morning. What was even worse was that a district court in the United States ruled that Trump's tariff policy exceeded its authority and was invalid. Gold prices were further weakened, plummeting to a weekly low of $3,245.

The PCE inflation data on Friday was moderate and did not bring much change to interest rate expectations. Gold prices consolidated and fluctuated, hovering around 3,300. Looking ahead to this week, the Trump administration will say over the weekend that China has violated trade agreements and will no longer be a good person. The Sino-US dispute will continue to stir up market sentiment, and funds are more likely to flow into gold for safety. Labor data will be available on Friday.

The US labor market has not yet shown any signs of weakening. If the non-farm payroll can maintain growth above 200,000, the Federal Reserve tends to focus on inflation risks, and there will be less room for interest rate cuts. On the contrary, if the labor market weakens, the space for interest rate cuts at the end of the year may increase to three times, and gold will be able to regain new impetus and improve. Let's take a look at the market situation. You might as well refer to each other.