This week, on Wednesday and Thursday, Federal Reserve Chairman Powell will testify on the US semi-annual monetary policy report. Analysts said that Powell’s testimony would provide a catalyst for the next big wave of gold. Gold futures stabilized below $1400/oz after experiencing a sharp fall on Friday, and traders are weighing the stronger-than-expected US Fed’s non-farm payrolls in June after the release of the Fed’s interest rate cuts.

RBC’s managing director of wealth management said that given the global concerns, including the economic downturn, Brexit and Middle East issues, there are plenty of reasons to encourage gold buyers to increase their efforts in the event-driven sell-off; he said, despite Weekly US employment data caused sellers to suppress the price of gold, some traders worried that there is no sign of interest rate loosening, but this week gold trading has returned to the starting point.

After the release of good non-agricultural data, traders’ expectations for the Fed to cut interest rates by 50 basis points this month have cooled significantly.

TD Securities said that Lagarde was appointed president of the European Central Bank last week. This is a good news for the price of gold. Lagarde’s arrival has depressed the bond yields of southern and western European countries. The current global record is 13.3 trillion. The yield on the US dollar bond is negative, which should help the gold price to maintain support.

But before a new round of bullish sentiment pushes gold prices up to $1,500 an ounce, gold prices may remain volatile; strong US economic data will limit gold prices for the rest of the year, as the market cannot see from the Fed’s performance. Out of price.

For most of the next six months, gold investors may bet that the Fed will cut interest rates, but not as much as the Fed funds futures curve shows; stable inflation and US economic data are still good, making the Fed unable to Convince traders to continue to do more gold.

An example of the negative impact of the latest macroeconomic data on gold is that after the US added 224,000 gold positions in June, the price of gold fell below $1,400 per ounce during the North American market on Friday.

Investment research dynamics researchers say that when the real interest rate (interest rate minus actual inflation rate) is negative, gold tends to perform best. At present, central banks have been able to control the fluctuation of gold prices to prevent gold prices from playing a safe haven when interest rates are negative.

From a fundamental point of view, it is very likely that the price of gold has begun to rise sharply in the next round: the number of global negative-yield bonds is huge, and the yield of US Treasury bonds is falling rapidly; silver will eventually “catch up” and begin to surpass gold. In other words, it is necessary to get used to the higher level of price fluctuations in the precious metals industry.

The Fed policy will eventually become the biggest driver of gold. As long as the Fed cuts interest rates several times, gold may rise to 1600. If gold can outperform the S&P 500 index significantly or continuously , the price of gold may return to 1900.

At present, gold seems to be digesting the recent gains and a correction, and the price is below the resistance of 1420. If the price goes back to 1370, it will be a chance to do more on dips.