On June 26th, following the release of US May PCE data which largely met expectations, the tense sentiment in the gold market cooled, with spot gold returning above the $4000 level. CBCX indicated that capital continues to focus on the buffering role of precious metals in a volatile environment.

Analyzing the market performance, CBCX noted that a weaker US dollar provided direct support for gold prices, with spot gold settling near $4026.78. However, the recovery in oil prices capped the upside, as the market remains cautious about the future path of interest rates.

The core PCE monthly rate was recorded at 0.3%, with an annual rate of 3.4%, indicating that inflationary pressures have not continued to rise significantly. For gold, such data helps to ease the valuation pressure caused by fluctuating rate hike expectations and prompts short-term capital to reassess the balance between safe-haven demand and interest rate dynamics.

If energy prices continue to decline subsequently, the inflationary disruptions facing gold may be further reduced. CBCX analysis suggests that the market will continue to observe the interplay between the US dollar, yields, and commodity prices to determine if gold can maintain its footing around the $4000 level.

Risk Warning: This article is for informational sharing only and does not constitute investment advice. Foreign exchange and precious metals are high-risk products; significant volatility may lead to loss of principal. Please invest rationally and bear your own risks.