Market Analysis: Powell's dovish comments and the Fed's dovish response mechanism boosted gold prices.

According to Investinglive analyst Giuseppe Dellamotta, recent comments from Federal Reserve Chairman Jerome Powell at the FOMC press conference, which were more dovish than expected, provided support for gold prices. He downplayed inflation risks and emphasized the weakness in the labor market, suggesting that the Fed is more tolerant of higher inflation than of a weak labor market. This week's focus is on the US non-farm payrolls report and the Consumer Price Index (CPI) report. Currently, the market expects the Fed to cut interest rates by 57 basis points by the end of 2026. If US economic data is strong, especially regarding the labor market, we may see a hawkish adjustment in market expectations for interest rates, leading to a decline in gold prices. On the other hand, weak data should further support precious metal prices as the market will bet on rate cuts in advance. From a broader perspective, due to the Fed's dovish response mechanism, real yields are likely to continue to decline, so gold prices should maintain an upward trend. However, in the short term, further hawkish adjustments in interest rate expectations may put pressure on the market. (Jinshi)