Market Analysis: Powell's Dovish Remarks and the Fed's Dovish Response Mechanism Support the Rise of Gold

On December 15, Jinshi reported that Investinglive analyst Giuseppe Dellamotta stated that recently, Federal Reserve Chairman Powell made remarks that were more dovish than expected at the FOMC press conference, providing support for gold prices. He downplayed inflation risks and emphasized the weakness in the labor market, suggesting that the Fed's tolerance for higher inflation is greater than its tolerance for weakness in the labor market. This week's focus is on the U.S. non-farm payroll report and the Consumer Price Index (CPI) report. Currently, the market expects the Fed to cut rates by 57 basis points by the end of 2026. If U.S. economic data is strong, especially in the labor market, we may see the market adjust its rate expectations to a more hawkish stance, 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 may continue to decline, thus gold prices should maintain an upward trend. However, in the short term, further hawkish adjustments in rate expectations may put pressure on the market.