**********Gold rebounds and gains momentum again, with market sentiment leaning towards bulls
The gold market has shown impressive performance recently, although it briefly fell below $2870 per ounce during trading yesterday, the overall market remains in a strong range. The latest CPI data released by the United States exceeded market expectations, putting short-term pressure on gold prices. However, as a safe haven asset, gold's price is more driven by market demand for safe haven, and the current pricing stage still leans towards bulls.
From a technical perspective, the overbought correction has been largely completed, and gold prices are expected to continue rising, challenging the short-term pressure level of $2940 per ounce. If it can successfully break through this level, the gold price may further rise to $2980 and ultimately test the psychological barrier of $3000/ounce.
The upward logic of the gold market is still valid. Although the US inflation data has brought temporary fluctuations, the risk aversion and long-term allocation demand still support the strengthening of gold prices. "- Bart Melek, commodity strategist at TD Securities
FICC perspective: Goldman Sachs bullish on gold, SPDR position data supports upward trend
From the perspective of fixed income, commodities, and currencies, although some institutions have not significantly over allocated gold, the trend of increasing allocation is quite evident. Faced with inflationary stickiness and market volatility, the safe haven nature of gold attracts continuous capital inflows, which is also an important supporting factor for the steady rise of gold prices.
Goldman Sachs' latest report points out that as global central banks maintain high demand for gold reserves, institutional investors are also readjusting their commodity allocation, and the attractiveness of gold in multi asset portfolios has significantly increased. In addition, the latest holdings data of SPDR Gold ETF shows that the fund's holdings have rebounded for several consecutive days, reflecting the market's confidence in the future trend of gold prices.
Even in the current macro environment, gold remains an important component of investment portfolios, and its ability to hedge and resist inflation gives it a unique advantage in volatile markets. "- Aakash Doshi, Head of Precious Metals Strategy at Citi
Short term key point: Support 2880, break through 2940 and look towards 2980
The short-term support level for gold prices is at $2880 per ounce. Once it falls below this level, it may trigger some stop loss orders, leading to a short-term retracement. But the overall trend is still upward, with market sentiment leaning towards buying on dips. The upper pressure level is at $2940 per ounce. If it can effectively break through, the gold price is expected to quickly rise to $2980 and eventually challenge the historical level of $3000 per ounce.
It's only a matter of time before gold breaks through $3000 per ounce. The market trend is clear, and investors should follow suit. "- Giovanni Staunovo, Precious Metals Analyst at UBS
Editor's viewpoint: Clear trend, do not operate against the trend
Overall, althoughUS CPI dataShort term pressure on gold prices, but the overall market still leans towards bulls. Technically speaking, gold has completed overbought correction and the trend continues to rise. On the funding side, SPDR position data also supports this view. From a long-term logic perspective, gold, as a safe haven asset, is still favored by the market. Investors should avoid counter trend operations, follow market trends, and seek entry opportunities at key points. $3000 per ounce may only be a matter of time, not trend.
