TechFlow, December 15 — According to Jinshi Data, Investinglive analyst Giuseppe Dellamotta said that recently, Federal Reserve Chair Powell delivered more dovish remarks than expected during the FOMC press conference, providing support for gold prices. He downplayed inflation risks and emphasized weakness in the labor market, suggesting the Fed is more tolerant of higher inflation than of labor market softness. This week's focus will be on the U.S. non-farm payrolls report and the Consumer Price Index (CPI) data. Currently, markets expect the Fed to cut rates by 57 basis points by the end of 2026. If U.S. economic data comes in strong, especially in the labor market, we may see a hawkish repricing of rate expectations, leading to a decline in gold prices. On the other hand, weak data should further support precious metal prices as markets front-run rate cuts. From a broader perspective, due to the Fed’s dovish reaction function, real yields may continue to decline, meaning gold prices should maintain an upward trend. In the short term, however, further hawkish adjustments in rate expectations could weigh on the market.
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