The recent movements in the financial markets are indeed worth pondering. As US non-farm payroll data approaches, market nerves are a bit tense, but from a broader perspective, the medium-term upward trend of gold has basically been set, and the non-farm data is at most a short-term fluctuation.

The key still lies with the Federal Reserve's steps. In December, interest rates were lowered to the 3.50%-3.75% range, directly changing the cost structure of holding gold. What does a decline in interest rates mean? The returns from keeping money in banks are no longer as attractive, which in turn increases the appeal of gold as an alternative asset. Mechanically, this provides a support level for gold prices.

Even more interesting is the liquidity aspect. The Federal Reserve recently injected $40 billion into the market by purchasing short-term government bonds, which is a tangible infusion of liquidity into the financial system. Meanwhile, global physical gold ETFs have been absorbing funds for six consecutive months, with $5.2 billion absorbed just in November. This scale indicates that it's not retail investors playing around; behind it are organized large funds making strategic moves.

Central banks around the world are also not idle, continuously increasing their gold reserves one after another. Coupled with ongoing geopolitical uncertainties, the risk-averse sentiment persists. These factors combined create a sustained demand for gold. From the perspective of the crypto market, the tug-of-war between risk assets and safe-haven assets is also worth noting, especially during liquidity cycle transitions.