Galaxy Securities in China: Gold breaking through the range may require waiting for the Federal Reserve to cut interest rates or for a surge in physical gold demand.

China Galaxy Securities stated that the breakthrough of the gold price range may need to wait for the Fed rate cut or a surge in physical gold demand. In the future, further observation of the US economic situation is needed to determine whether there is stagflation or recession. If stagflation occurs and the Fed does not cut rates, gold is likely to oscillate upwards. If a recession takes place, gold will follow other commodities in a downturn until the Fed initiates a rate cut. The oscillation range of gold has been systematically raised to $3150 to $3550, with gold expected to rise to over $3700 after the Fed rate cut. Additionally, strong demand for physical gold may lead to another rise in the gold price in the second half of the year.