U.S. retail and non-farm employment data significantly exceeded expectations, with strong domestic demand and resilient employment in the U.S. economy, reversing the market's pessimistic outlook of economic weakness. The market has adjusted the peak interest rate of the Federal Reserve upward and delayed the timing of rate cuts, with expectations of prolonged high interest rates and tightening measures heating up, driving the dollar to strengthen and U.S. Treasury yields higher, greatly increasing the cost of holding gold and creating a bearish pressure on the market.

Gold has resisted the downward trend against the overall market, maintaining a volatile but relatively strong performance. The ongoing demand for geopolitical safe-haven assets continues to support the market, coupled with global funds increasing gold holdings to hedge against the risk of U.S. sovereign credit debt. The demand for hard currency preservation fully offsets the negative impact of rate hikes, stabilizing the strong market despite rising U.S. Treasury yields.