High inflation rates directly impact gold price trends.GOLD (US$/OZ)TVC:GOLDVili_Wealth_PlanAs market optimism regarding a diplomatic solution to the conflict intensifies, investor risk appetite has improved, leading to a decline in US Treasury yields and the US dollar index. A weaker dollar reduces the cost of gold for holders of other currencies, thereby boosting demand. Market analysis suggests that the previous sharp decline in gold prices has pushed technical indicators into oversold territory. The short-term rebound could represent a bottoming out or simply a correction driven by short covering. However, gold still faces significant downward pressure. Recent high international oil prices and rising energy costs could further increase global inflationary pressures, reinforcing market expectations that major central banks will maintain high interest rate policies. Since gold itself does not generate interest income, the opportunity cost of holding gold increases in a high-interest-rate environment, which may limit the extent of any further price rebound.