On Monday, July 7th, gold and silver continued their retreat.

According to GTCFX, the precious metals market remains constrained by expectations for Federal Reserve interest rate hikes and the resilience of the US dollar, with investors maintaining a cautious stance ahead of the release of the meeting minutes.

Spot gold is fluctuating within a high-level range, but buying interest has not yet formed sustained momentum, indicating the market's preference to await new directional cues from policy language and economic data.

The decline in gold and silver is not solely due to technical adjustments; it more significantly reflects a market repricing in response to the high-interest-rate environment.

GTCFX notes that although service sector data shows signs of cooling, persistent inflation and employment figures are discouraging traders from prematurely betting on a policy pivot towards easing.

Concurrently, the resilience of the US dollar index is increasing the opportunity cost of holding non-yielding assets.

From a capital flow perspective, precious metals had accumulated substantial gains earlier, leading some profit-takers to reduce their positions ahead of key policy events.

The price of gold may continue its consolidation if the meeting minutes continue to emphasize inflation risks.

Conversely, if incoming data signals weakness, allocation demand could return to the market.

Silver prices will also be influenced by a combination of industrial demand expectations and overall risk sentiment.

Looking ahead to the coming week, GTCFX analysis suggests that gold's trajectory will revolve around the US dollar, real yields, and the Federal Reserve's rhetoric.

Short-term volatility does not alter the market's focus on the medium-to-long-term allocation value of these assets, but the pace of any sustained move still requires confirmation from further macroeconomic signals.