"Powell's remarks" mark a key turning point in the market — breaking news analysis predicting the future of gold and the dollar

The gold market is currently showing resilience, trading above $5,000. This strong support is driven by a combination of factors, including the flow of geopolitical risks stemming from international conflicts prompting investors to seek safe assets, and widespread selling pressure on bonds and currencies. Market participants are increasingly focused on two key economic events scheduled for the middle of the week.

Background for Maintaining Gold Above $5,000—Risk Aversion and Selling Pressure Coexist

The reasons for gold’s steady performance are multifaceted. One factor is the intensifying geopolitical uncertainty, which accelerates the trend of global investors reallocating funds into gold as a traditional safe haven. At the same time, the selling of various bonds, including U.S. Treasuries, and major currencies, combined with this, further enhances gold’s relative appeal.

Two Scenarios for Powell’s Remarks—A Turning Point in the Dollar Market

The market’s primary focus is on two significant events scheduled for the latter half of the week. Late Tuesday will see the release of the U.S. Consumer Confidence Index, followed by a crucial speech by Federal Reserve Chair Jerome Powell on Wednesday.

Aaron Hill, head of market analysis at FP Markets, points out that the market could shift dramatically depending on Powell’s comments. He believes that if Powell adopts a firm stance against political pressure and clearly emphasizes the Fed’s independence in policy-making, the dollar is likely to be bought in the short term. Conversely, if his remarks are perceived as leaning toward a gradual rate cut, selling pressure on the dollar could intensify.

The market is now viewing Powell’s comments as a key turning point in the direction of monetary policy.