The stabilization of inflation in the United States and the sharp increase in the expectation of interest rate cuts led to a strong rally last week.
Looking forward to this week's trend, most analysts are optimistic that the trend will continue to rise, but some are also cautiously optimistic, believing that last week's breakthrough is still facing a test, and investors must be cautious in chasing up.
*Last week, it rose in the middle of the week, although it once fell below the $2025 mark in the middle of the week, but did not continue to decline, and subsequently** recovered all the losses.
In particular, after the release of the US personal consumption expenditures price index (PCE), which is closely watched by the market, the data was not as hot as the market expected, which strengthened the expectation of a rate cut by the US Federal Reserve.
According to the released data, the core PCE price index in the United States recorded an annual rate of 28%, in line with expectations, the previous value was 29%, the smallest increase since March 2021, shows that the inflation level in the United States has fallen significantly.
As interest rate cuts are conducive to the continued upward trend of gold prices, ** pulled up last Friday (March 1), breaking through the $2,080 mark.
*Up 2 last week37 and closed at 2082 per ounce$9, up as high as $2,088 per ounce$05, the lowest drop is 2024 per ounce$90.
The New York Mercantile Exchange (COMEX) closed at 2,095 an ounce for April$2, more than $2 from last week**, the best performance since late November last year.
Bart Melek, head of commodity strategy at TD Securities, noted that gold prices could see some signs as the market was confident that the Fed would ease monetary policy by the middle of the year, thereby reducing the opportunity cost.
Gold prices remain uncertain and analysts are cautious
Although the rally has breathed new life into the market, some analysts believe that the trend is still uncertain.
Adam Button, chief currency strategist at ForexLive, said Friday's show showed just how much potential there is, though he doesn't think this time is supported by strong fundamentals.
forex.James Stanley, senior market strategist at com, also noted that although he expects the near term to **will**, he will not follow the market because he believes the Fed's pivot has not yet arrived.
He said: "This week's non-farm payrolls report will be a big deal for the macro economy, but the relevant data will not be released until Friday (8th). As such, there may be some testing around $2100, but I am cautiously optimistic about breaking above this level and catching up on this move as we approach it. ”
Phillip Streible, chief market strategist at Blue Line Futures, said: "While the rally in gold prices has been impressive, I would like to see gold holding higher support levels to confirm that this is not another bull trap." ”
Economic data to watch this week include Friday's US non-farm payrolls report, and Fed Chair Jerome Powell's testimony before Congress on two days this week, which is expected to pick up clues from his speech for interest rate cuts.
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