Gold Prices Rebound Amid Persistent Inflation Concerns

The gold market has been experiencing a sharp decline after a weekend speech by US Federal Reserve Chairman Kevin Warsh at the Jackson Hole conference. The speech caused a tough message about inflation, leading to an adjustment of expectations for interest rates and the US dollar (USD) in the market.

Despite this drop, analysts have not turned pessimistic. A recent survey by a precious metals website with 21 Wall Street experts shows that ten people predict gold prices will increase this week, while six believe they may continue to fall, and five predict a sideways market.

The fundamental factors supporting gold's upward momentum have not changed significantly, despite the short-term pressure from interest rate expectations. The high level of US public debt continues to put pressure on fiscal policy, making it difficult for the Fed to maintain a high interest rate level in the long term.

Inflation remains persistent and has not returned to the target level sustainably, creating a tug-of-war between controlling inflation and maintaining growth. This situation creates a favorable environment for gold holding demand in the medium and long term.