Although gold prices are not ready to break through $2000, the US debt crisis may ignite bulls

The cooling inflationary pressure and the increasingly weak US labor market have led the market to question the Federal Reserve's plan to maintain interest rates in a restrictive range for the foreseeable future, providing new impetus for gold. However, market sentiment is still insufficient to push prices above $2000 per ounce.

At present, gold prices have closed at 1992 US dollars, ending three consecutive weeks of gains. The closing of this week is basically the same as last Friday. However, compared to the opening gap at the beginning of this week, prices have fallen by nearly 1%.

Although gold prices ended the week with a strong rise, they have fallen back from Thursday's high. On Friday, November 16th, the latest trading price of spot gold was $1980.65 per ounce, up more than 2% from last Friday's three week low.

Although the Federal Reserve has maintained interest rates unchanged for the second consecutive time in this tightening cycle, Federal Reserve Chairman Powell still maintains his tightening tendency. "Is the restrictive nature of monetary policy sufficient to lower inflation rates to 2%? That's the question we're asking ourselves," Powell said at a press conference after the monetary policy decision.

Next week, the US Treasury Department will auction 20-year bonds and 10-year treasury bond inflation protected securities. The two auctions followed last week's disappointing 30-year treasury bond auction.

Analysts point out that as debt continues to grow, the attractiveness of US sovereign debt is decreasing. The debt crisis in the United States is extremely favorable for gold, but the United States has a lot of leverage to maintain a large amount of debt, so it is unlikely that we will see a crisis soon.

As the gold market enters a seasonally strong point, analysts remain optimistic about the gold market, but some argue that new catalysts are needed to achieve the ultimate goal of a historic high in gold prices.