Gold: Long Liquidations to Weigh on Prices – TDS
Gold market analysis: US bond yields continue to rise, the dollar continues to rebound, and gold encounters resistance in its upward trend.
Wang Gang of Bank of China Guangdong Branch stated that last week's weak employment report raised concerns about economic recession and triggered market expectations of a rate cut by the Fed. If subsequent economic data shows that the concern about economic recession is justified, it will not only increase expectations of a rate cut, but even speculation about the magnitude of the rate cut. If the market creates such an atmosphere, it will undoubtedly benefit the further rise of gold. Some strategists suggest that in the current environment, reducing risk assets and increasing safe-haven assets such as gold and long-term US Treasury bonds is a prudent practice. Especially gold, which is a resilient asset.
Gold: CTAs Return to the Offer in Gold Markets – TDS
Gold market analysis: the US dollar and US bonds have rebounded slightly, and gold maintains a range of shock adjustments.
Wang Gang, from the Guangdong branch of the Bank of China, stated that since this month, the USD/JPY exchange rate has stabilized and rebounded slightly, which has prompted gold to continue to experience profitable fluctuations at high levels. Once the scenario of the Federal Reserve implementing a significant interest rate cut beyond expectations to prevent the economy from falling into recession appears, it will inevitably push down the US dollar further, and at that time, gold is expected to continue to be favored and rise. Even if the Federal Reserve uses a gradual and small-scale approach to cut interest rates, it is expected that it will not have too much pressure on gold.
Gold: A Revisit of the $2400/oz Range Can Spark a Sell-off – TDS
Gold Market Analysis: Global Stock Market Panic Decline Continues to Put Pressure on Profit-Taking Sales for Gold.
Wang Gang from the Bank of China Guangdong Branch said that as global stock markets tumble, gold is caught in the crossfire of conflicting market forces. The exacerbation of economic recession concerns usually enhances the appeal of gold as a tool for preserving wealth, as panicked investors close out profitable positions to compensate for losses in other areas or meet additional margin requirements, putting pressure on gold to sell off. The short-term outlook for gold is still cautiously optimistic, but volatility is expected to intensify.