Gold prices climbed to around $5,200 per ounce as the global market remained tense due to the US reinforcement of troops in the Middle East. The price has risen by nearly 6% over the past six trading days. Washington imposed sanctions on more than 30 entities that support Iran’s oil and arms sales, increasing pressure on Tehran ahead of the latest round of nuclear talks in Geneva on Thursday.
Meanwhile, the Trump administration in the United States continues to push forward its tariff policy, further straining its already tense relations with trading partners. U.S. Trade Representative Robert Lighthizer said that Trump will sign an order to raise global tariffs to 15% “where appropriate.” Previously, the Supreme Court ruled that Trump’s so-called reciprocal tariffs were invalid, and a 10% general tariff took effect on Tuesday.
OCBC Bank strategist Christopher Wong said the latest move in gold reflects “the market’s repricing of uncertainties over new tariffs and geopolitical concerns”. He believes that as the market digests the latest news, Federal Reserve policy and the dollar’s performance, gold prices may experience a two-way consolidation. The US dollar index fell 0.1% on Thursday, after closing 0.2% lower in the previous trading session.
Since the beginning of this year, the price of gold has risen by nearly 20%. After hitting a record high of $5,595 per ounce in late January, it experienced a rapid two-day correction and has now returned above $5,000 per ounce. Ongoing geopolitical and trade tensions have injected new impetus into this multi-year bull market and strengthened the dollar depreciation trade, where investors sell off the US dollar and US Treasuries.
Further signs of friction emerged when the Cuban military killed four people who opened fire from a speedboat with a Florida license plate, an incident that could heighten tensions with the United States.
Concerns over government interference in the Federal Reserve’s policies have also supported the gold price. In his farewell article before retirement, Raphael Bostic, president of the Federal Reserve Bank of Atlanta, wrote that he was worried that the American public had begun to question the independence of the central bank.
Technical analysis:
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Gold: Yesterday, the green buy limit area we alerted through the plugin performed very well. After testing this area, there were consecutive rebound movements with a profit-to-loss ratio of 2-3 times. For today, we believe that after obtaining continuous support, a rapid break above the 5200 mark and holding it effectively will be the key. Therefore, our intraday strategy will lean towards buying on pullbacks after a breakout and supplementing with defensive measures to sweep liquidity below 5150. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
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Nasdaq: Yesterday, the price did not experience a pullback and directly reached above 25,400, driven by the favorable financial reports of tech giants. Currently, the price is undergoing a technical correction and has swept through the liquidity after the opening of the US stock market overnight. It is recommended to reposition at the 25,000/25,100 area today and observe for bullish signals. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
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Crude oil: The price yesterday continued to maintain this volatile pattern. Currently, the price center is in the 65.50-66 range. The green buy limit area below is recommended to be retained for one more day. On the upside, if it can break through 66.50, a pullback buy operation can be considered. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
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Today’s key financial data and events to focus on:
21:30 U.S. Seasonally Adjusted Initial Jobless Claims (in thousands) (to 0221)
