SMM News: the gold market once again fell below the $1800 / oz mark, bulls can not make a further breakthrough.

Ole Hansen, head of commodities strategy at (Saxo Bank) at Saxo Bank, said the performance of the dollar's sustained support, rising geopolitical risks and low interest rates were all bottoming out for gold.

Although there are many bullish factors that can push gold higher, Hansen believes that the performance of the bond market needs to be watched. Expectations for the Fed to introduce yield curve control remain high.

Fed governor Brainard said on Tuesday that if forward guidance and large-scale asset purchases are no longer feasible, then the Fed's next step is to control the yield curve.

The market now believes that the Fed could begin to control the yield curve as soon as September.

In addition, rising inflation means that real interest rates will fall further, which in the current environment of great uncertainty means that bonds are less attractive as safe havens and gold is more attractive.

Since April, the US bond market has behaved as if yield controls had emerged. This gives investors a reason to allocate gold in their first portfolio. "

The epidemic in the United States is still very serious, which has dealt a huge blow to its economy, providing a large amount of safe haven demand for the market.

However, Hansen pointed out that the entire gold market is extremely bullish, but gold prices need to fall to attract new capital to enter the market.

"the gold market needs a bigger correction and a longer-term consolidation."

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