Despite a stronger dollar, gold demand remained robust as the world’s largest gold buyer returned from its holiday. Gold prices continued to rise after surging nearly 3% on Monday.
Gold prices rose as much as 1.6% to above $3,387 an ounce as China ended a five-day holiday and buyers rushed to snap up the precious metal, convinced that the record rally still has room to run.
Phillip Nova analyst Priyanka Sachdeva said, “With China reopening this morning, bargain hunters have returned to the market.” She added that the strengthening of the US dollar today might curb the further upward momentum of gold.
The market turmoil caused by US President Donald Trump’s radical trade policies has further solidified gold’s status as a safe-haven asset. His initial imposition of import tariffs followed by a suspension of the tariffs has weakened the traditional status of the US dollar as a safe-haven asset and led investors to increase their allocation to US assets.
Gold prices have soared by more than a quarter so far this year, hitting a record high of just over $3,500 an ounce in April, but have retreated in recent weeks. The rally has been driven by safe-haven buying from investors spooked by the trade war, as well as speculative demand from China and purchases by central banks.
In other respects, investors are keeping a close eye on the Federal Reserve’s (FED) interest rate decision on Wednesday (March 23rd). Despite Trump’s increased pressure on Fed Chair Jerome Powell to ease monetary policy, it is widely expected that policymakers will keep interest rates unchanged at the end of Wednesday’s meeting. Lower borrowing costs are usually beneficial for gold as it does not pay interest.
Technical analysis:
Gold: After experiencing a manipulated drop during the Labor Day, the price began a restorative rebound on Monday. In the early Asian session, the price rose from 3320 to above 3380. It is recommended to closely monitor the buy signals in the pullback demand zone within the day. Both 3330 and 3270 are key areas to focus on within the day. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and write “666” in the message.
The Nasdaq: After several consecutive days of rebound, the price has reached the 20,000 mark. There may be too many short-term profits accumulated and a correction is needed. We suggest paying attention to the pullback signals within the day. A break below 19,800 should be watched closely. Additionally, for low buying, continue to wait for liquidity to be swept up around 19,000 before participating. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and note “666” in the message.
Crude oil: As Trump has postponed the full reciprocal tariffs for 90 days, the pressure on oil prices from recession concerns has been greatly alleviated. Currently, the price needs to retest the previous low. If it does not continue to set new lows, it is more likely to form a bottom pattern in the future. If the price continues to break upward within the day, you can pay attention to the momentum trading signal and follow directly. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and note “666” in the message.
Today’s key economic data and events to focus on:
16:00 Eurozone April Markit Composite Purchasing Managers’ Index (PMI) Final Reading
17:00 Eurozone Producer Price Index (Year-on-Year) for March
