Today, the gold market has once again refreshed everyone's understanding. Under the bearish pressure of the Federal Reserve's clear announcement yesterday not to cut interest rates and to maintain high rates, gold prices not only did not fall but directly broke through $5,500. Generally speaking, with high US dollar interest rates, assets like gold that do not generate interest should be out of favor, but the current market trend is completely opposite.

1. Why did the "no rate cut" policy fail?
In the past, gold prices feared rate hikes because everyone thought holding dollars was more profitable. But now, investors value safety more. The US's announcement of no rate cuts appears to indicate a resilient economy on the surface, but in reality, it is a response to unstoppable inflation.
People are beginning to realize that high interest rates have maintained the dollar's exchange rate but have also increased the US government's debt burden (interest expenses are staggering). When everyone loses faith in the purchasing power of fiat currency, capital will flood into gold. So, what gold is buying now is not a "interest rate differential," but a "policy" against credit risk.

2. From "safe haven" to "strategic core holding"
The $5,500 level indicates that gold's attributes have completely changed.
Central banks are "moving": global central banks are no longer treating the dollar as the sole reserve currency but are continuously converting foreign exchange into physical gold. This large-scale, long-term buying has laid a very high foundation for gold prices.
Geopolitical "gunpowder": from Middle East tensions to resource battles in South America, and driven by the soaring silver prices, market sentiment has entered a stage of "buying expensive but avoiding mistakes."

3. What should we look at next?
After gold $PAXG surpasses $5,500, the market has entered a vacuum zone of high-frequency fluctuations.
Short-term logic: The news that the Federal Reserve will not cut interest rates has been confirmed, and the market instead feels that "bad news is exhausted." As long as inflation expectations do not decline, gold remains attractive.
Risk points: At this price level, speculative profits are abundant. If the no-rate-cut policy causes US dollar liquidity to tighten suddenly, or if some major countries reduce their purchases abruptly, gold prices could experience a sharp "pullback."
In summary:
Gold is no longer just an ordinary commodity; it is a "lifeline" amid global financial turmoil. The break above $5,500 reflects everyone's anxiety about the traditional currency system. For us, rather than guessing where the top is in this market, it is better to focus on the pace of central bank purchases globally. #金价突破5200美元