The gold market has enjoyed three straight weeks of strong gainsWall Street is bullish on gold's continued climb

Precious metals markets, and gold in particular, have indeed shown extreme volatility over the last week. The price of gold fluctuated in a mix of positive and negative news, but in the end, the overall trend remained strong. Industry experts are almost unanimously bullish on gold's prospects, while retail sentiment is firm and upbeat.

From the point of view of technical analysis, the gold price has shown a strong resilience in the course of this week's volatility. Although there was a certain decline on the negative news, it found support near key positions such as $2,350 / oz. At the same time, under the stimulus of good news, the price of gold can also quickly rebound and hit a new high.

Gold prices started off the week in the red, with spot gold trading around $2,391.62 an ounce last Monday and falling steadily during the subsequent North American trading session. This move may be related to the adjustment of market expectations about global economic conditions and monetary policy. China's failure to buy gold for a second straight month put further pressure on the gold market, pushing prices down from $2,378 an ounce to Friday's intraday low of $2,354.30. That's a sign of reduced demand from one of the world's largest gold consumers, which is somewhat bearish for the gold market. Fed Chairman Jerome Powell's two days of dovish testimony to Congress changed the market's expectations for the Fed's future monetary policy. This change in expectations brought support to the gold market, allowing the price of gold to rise steadily over a period of time. The June CPI report, released Thursday morning, came in well above expectations, triggering wild swings in the markets. Traders quickly pushed spot gold up from $2,379.12 an ounce to $2,407.66 and set an intra-week high above $2,420 an ounce in the morning. This performance highlights the important impact of inflation data on the gold market.

Marc Chandler, Managing Director of Bannockburn Global Forex, provides insight into the gold market analysis. He highlighted a number of factors behind the recent rise in the gold market and predicted the future trend of gold.

Chandler noted that gold has risen for the third week in a row, driven by lower U.S. Treasury yields and a weaker dollar. Both of these factors reduce the cost of holding gold and increase its attractiveness relative to other assets. He mentioned that the mild CPI data and market speculation that the Federal Reserve may cut interest rates more often this year also contributed to the rise in gold prices. When inflation data is tame, the market may expect the Fed to adopt a more accommodative monetary policy, which usually leads to lower interest rates, further supporting gold prices. Chandler also highlighted the positive impact of falling inflation on gold prices, which seems somewhat "ironic." He explained that while rising inflation typically pushes gold prices higher, in this particular case, the decline in inflation has instead enhanced the appeal of gold, as it reduces the cost of holding gold and could prompt the Federal Reserve to adopt more accommodative monetary policy. Chandler also mentioned other factors affecting the gold market. He noted that while China may not have bought gold last month, other central banks in Asia and Europe did. This suggests that gold still has an important place in global central bank reserves and is likely to continue to attract central bank purchases. He concluded by citing a UBS survey of 40 central banks, noting that the biggest concerns are geopolitical tensions and the weaponization of reserves. Both factors could increase market uncertainty and drive investors to seek safe haven assets such as gold.

Overall, Marc Chandler's view on the gold market is positive and constructive. He believes that while there may be consolidation in the short term, the trend for gold is still upward. This view is based on a number of factors, including lower U.S. Treasury yields, a weaker dollar, dovish CPI data, market expectations for the Fed's monetary policy, purchases by other central banks, and geopolitical tensions and the risk of weaponization of reserves. Looking ahead, the movement of the gold market will continue to be influenced by factors such as the state of the global economy, monetary policy expectations, and inflation data. For investors, it is necessary to pay close attention to changes in these factors and adjust their investment strategies in a timely manner according to market conditions. At the same time, it is also necessary to pay attention to controlling risks and avoid blindly following the trend or excessive trading.