This week, the gold market has shown its robustness in volatility, despite facing dual pressures from a strengthening US dollar and rising bond yields, it has maintained a relatively stable trading range overall. Market analysts hold different views on the short-term and long-term trends of gold, but generally believe that market volatility may intensify with the arrival of the summer trading season.

The tug of war between the US dollar and gold:

This week, spot gold prices fell by more than 1%, mainly influenced by strong business activity data in the United States, which has driven the strengthening of the US dollar and an increase in bond yields. The strength of the US dollar makes gold more expensive for holders of other currencies, while the rise in the yield of 10-year US treasury bond bonds weakens the attractiveness of gold as an interest free asset.

Market analyst's perspective:

Bart Melek, head of commodity strategy at Daoming Securities, pointed out that the rise in interest rates and the sustained strength of the US dollar are a direct reflection of the decline in gold prices. James Kniveton, a senior corporate forex trader at Convera, emphasized that the resilience of the US economy provides the Federal Reserve with a unique position to use higher interest rates to combat inflation, which may continue to boost the US dollar in the short term.

Technical support for the gold market:

Although the price of gold failed to maintain an increase of over $2350 per ounce, it successfully maintained a support level of around $2300 per ounce. This indicates that there is some buying interest in the market at the current price level.

Market sentiment and investor expectations:

Chantelle Schieven, head of research at Capital Research, reminds investors that volatility in the gold market may intensify due to low market liquidity and uncertainty in Federal Reserve policies. Meanwhile, Kitco News gold survey shows that Wall Street analysts are divided on the near future prospects of gold, while ordinary investors are relatively optimistic.

The performance of the gold market this week reflects the combined effect of various factors, including the strength of the US dollar, strong US economic data, market expectations for Federal Reserve policy, and changes in investor sentiment. Despite the short-term pressure on gold prices, in the long run, market demand for gold remains stable. Investors should remain vigilant and closely monitor market dynamics and the release of economic data to capture investment opportunities.