Minmetals Futures: Gold's overall trend remains in a volatile pattern

Trump announces an indefinite extension of the ceasefire with Iran, extending the Lebanon ceasefire agreement by three weeks simultaneously, reducing the short-term risk of geopolitical escalation, and market volatility gradually converges. However, the risk of Strait shipping blockade remains unresolved, and disruptions to energy supply and inflation pressures still exist; currently, U.S. Treasury yields remain steady at around 4.3%, and gold’s overall trend remains volatile. Coupled with Woshiyu’s testimony reaffirming the Federal Reserve’s monetary policy independence, and its determination to fight inflation, a cautious attitude towards rate cuts, and advocating for balance sheet reduction to tighten monetary policy, the market is reassessing policy frameworks and inflation response logic. The prolongation of the ceasefire is only a temporary easing of market sentiment and has not substantially loosened policy or interest rate expectations. Short-term upside potential for gold prices remains suppressed by monetary tightening expectations. Strategically, it is recommended to stay on the sidelines, (Minmetals Futures).