#美联储降息 The core logic behind this wave of gold price surge

Recently, gold prices have risen quite rapidly. Ultimately, it’s due to several forces acting simultaneously. The Fed has signaled a dovish stance, directly weakening the dollar, which is a positive for non-dollar assets like gold—capital is flowing into this sector at an accelerated pace. Additionally, geopolitical tensions are increasing, and the market’s appetite for safe-haven assets is at an unprecedented high. Considering that inflation is retreating but at a slow pace, gold’s properties of anti-risk and anti-inflation appeal to investors. The multiple positive factors stacking up naturally push prices higher.

From a technical perspective, the bullish trend also shows signs of dominance. On the daily chart, gold prices have been climbing from early lows, recently holding onto the key support level at 4280, with the upward momentum still ongoing; Bollinger Bands clearly indicate the price is in an upward phase, and the MACD has generated a golden cross with the red histogram still expanding, suggesting that the short-term bullish momentum has not shown signs of weakening.

This rally also triggers chain reactions: holders of gold assets see a significant increase in profit potential; profit expectations for gold mining companies will be boosted; but jewelry manufacturers face cost-driven price adjustment pressures; on the capital side, safe-haven funds are concentrating into gold, which in turn cools short-term activity in high-risk assets. $PAXG