Faced with a huge headwind, the gold market has maintained its resilience. But some analysts say that gold urgently needs a catalyst to push the price out of the current downward trend.

After experiencing four weeks of decline, gold rose moderately last week. Despite the rise in gold prices, analysts pointed out that the overall gold market is still in a "wait and see" mode, and this week's economic data may cause some key fluctuations.

US economic data continues to play an important role in the popularity of the gold market. The Federal Reserve has stated that as healthy economic activity continues to support the tight labor market, it will maintain higher interest rates for a longer period of time.

Federal Reserve Chairman Powell reiterated this position at the Fed's annual meeting held in Jackson Hole last Friday. Although Powell did not provide any new information, he reiterated the Federal Reserve's position to target inflation to 2%, although this still depends on the data.

Powell said in his speech, "We rely on star navigation in a cloudy sky, and in this situation, risk management considerations are crucial. At the upcoming meeting, we will evaluate our progress based on overall data and constantly changing prospects and risks

Phillip Streible, Chief Market Strategist for Blue Line Futures, stated that weak data focusing on this Friday's non farm payrolls report may inject some new vitality into gold, which is an early signal that the Federal Reserve's tightening cycle has come to an end. But he added that there are some major obstacles in the market that need to be cleared.

He also said, "Even if the market does improve, investors may still hesitate to re-enter the market. Investors will take a more conservative stance on gold and silver in the short term. Gold prices need to break above $1971 to become neutral, but they cannot even break above the resistance level of $1951

Although some analysts described Powell's statement as "dull," they pointed out that for gold, the current situation remains a complex environment.

Craig Erlam, senior market analyst at OANDA, said that the upward movement of gold may be limited in the short term.

He wrote in a report: "Powell's remarks did not reassure traders, as they are increasingly being forced to accept the fact that interest rates have remained high for even longer, which has strengthened the US dollar and once again put pressure on gold. Currently, gold prices are still above $1900, but it is only just right. Obviously, the Federal Reserve is far from confident that the task has been completed

Although the short-term upward space for gold prices seems limited, the downward space may also be the same. Christopher Vecchio, head of futures and foreign exchange at Tastylive.com, said that as bond yields remain near 15-year highs, gold prices should be much lower.

He said he suspects that the increase in economic uncertainty in Asian countries and the threat of European stagflation are helping to support safe haven demand for gold.

He said, "Asian governments will have to invest a lot of good money in bad investments, and this uncertainty is helping to raise the bottom price of gold and silver. I think the worst days for gold and silver have passed, and the market is not yet ready to rise, but I expect gold prices to hover around $1900 for some time." Vecchio added that any signs of economic weakness may convince the Federal Reserve that it does not need to raise interest rates further.