Powell’s Speech Boosts Market Confidence, Watching Whether Gold Can Stabilize in the Short Term

US gold fell 1.77% to $1979.9 per ounce, while the SHFE gold 2308 contract fell 0.86% to 447.62 yuan per gram. Last week, several important officials from the Federal Reserve spoke and explicitly refuted the market’s view of an interest rate cut within the year, stating that inflation is still too high and needs to be observed and waited for. On Friday, Federal Reserve Chairman Powell said that US inflation is well above the 2% target and the FOMC is “strongly committed” to its promise to bring inflation back to the target of 2%. Price stability is the cornerstone of maintaining a strong economy, but pressures on the banking industry may affect the Fed’s interest rate path. If tightening credit conditions resulting from a banking crisis lead to an economic slowdown, the Fed may not need to raise rates to their original high level. Powell’s speech essentially indicated a signal to pause rate hikes in June, thus boosting the trend of gold prices. From a technical chart perspective, US gold stabilized slightly at the 60-day moving average, with Thursday’s low forming a support level. Let’s see if it can hold up.