Undoubtedly, the recent gold market has been affected by repeated expectations of interest rate hikes, showing a low and weak trend. Whether from the perspective of CPI, PPI, or from the perspective of the resilience of economic data, they all point to the need for further austerity, but Walsh chose to once again downplay the issue of interest rate hikes in his last public speech before the FOMC silence period, leaving only the option of further tightening. Furthermore, although economic data is resilient, there is also a phenomenon of strong growth, and financial markets are also unstable due to high expectations of interest rate hikes. Taken together, the market is not trading “October interest rate hikes and swings,” but pricing is “likely to be postponed to December.” This makes the top of the Fed's short-term interest rate already visible, but the downward inflection point has not yet arrived. As a result, the price of gold is stuck in a narrow fluctuation range where “inflation data supports continued interest rate hikes,” but “continued interest rate hikes may cause economic and financial markets to fluctuate and limit interest rate increases.”

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