Gold prices soar! A new high for the year!

The London spot gold price rose to US$2,119.79 per ounce in the early morning of March 5.

A number of recent U.S. economic data show that the Federal Reserve is making relatively smooth progress in controlling inflation. Market expectations that the Federal Reserve may start an interest rate cut cycle in May have risen again. Coupled with thunderstorms in New York community banks and geopolitical conflicts, the international gold price has been boosted upward. .

Song Jiangzhen, Investment Director of Yuebao Gold, believes that after the international gold price continued to rise and technical breakthroughs occurred, the resistance from bulls has significantly weakened. It is expected that the U.S. financial market may have been exposed to hidden risks, and hedging demand has pushed up the international gold price. However, it should be noted that the U.S. dollar index has not fallen significantly. As the Federal Reserve’s March interest rate decision is approaching, investors need to be cautious when pursuing higher prices.

Independent analyst Lu Chao pointed out that since the international gold price entered March, bulls have actively launched an offensive. In just two trading days, the international gold price shot up from 2,038 US dollars per ounce to around 2,120 US dollars per ounce, setting a new high for the year and only one step away from the historical high. . International geopolitical factors have begun to exert their influence, and the uncertainty caused by the Russia-Ukraine conflict and the US election disputes continues. At the same time, with the support of the Federal Reserve's expectation to cut interest rates within the year, the confidence of bulls in international gold prices has greatly increased, and it is expected to hit a record high again.

Liu Shikai of the Trading Center of Shandong Zhaojin Gold and Silver Refining Co., Ltd. said that the U.S. economy began to show cooling signals, inflation data continued to fall, the central bank continued to purchase gold, and risk aversion sentiment increased. Driven by four bullish factors, the international gold price exceeded US$2,100/ ounce mark. After positive factors appeared in the fundamentals, the international gold price technically broke through the wide oscillation range, bullish sentiment among bulls increased, and the market began to trade the logic of interest rate cuts. The international gold price may be expected to continue its rising momentum.

Shen Guofu, a precious metals analyst at Yongkun Holdings Investment Research Center, pointed out that due to recent weak U.S. economic data, expectations for an interest rate cut in June have rebounded, risk aversion triggered by another thunderstorm at community banks in New York in the United States and continued tensions in the Middle East. Multiple factors have combined to drive 3 In the early morning of March 5th, the international gold price exceeded the integer mark of US$2,100/ounce.