Weekly

Last week, the price of gold fell first and then rose as scheduled, reaching a high of $2,886.77, and the market highly expected the $3,000 mark. Influenced by Trump's announcement of tariffs on Canadian, Mexican and China last week, the price of gold had seen a correction in the previous weekend, and it was under pressure on Monday.

The price of gold fell as low as $2,772, and rebounded rapidly after the period. Although the tariffs of Canada and Mexico were suspended, the two countries had already begun to prepare for the start of a trade war. Canadian President Truff even described Trump's attempt to annex Canada as no joke and the relationship became tense.

In China, due to the impact of the 10% tariff, the China government has also actively countered it. It is expected that the trade war will continue to disturb market sentiment, and it will be easier for funds to flow into the precious metals market to hedge, thus supporting the gold market to break the top.

Looking back at Trump in the 1900s, during the first trade war, the price of gold started at $1,160 and once rose above the $2,000 mark, with an increase of 80%. As a warning, funds were more likely to flow into the gold market, and gold was robbed from the British treasury to the United States. It is believed that central banks in various countries may gradually increase gold as central bank reserves, which supported the long-term upward trend of the gold market.

Another focus of the market last week was the performance of the US labor market. After Thanksgiving and Christmas New Year's Day, the labor market slowed down, and the non-agricultural growth rate narrowed to 143,000 person-times, which was worse than last month and expected. The gold price once took advantage of the situation on Friday night and then broke the top, which shows that the underlying capacity is still sufficient.

The probability of the Federal Reserve's interest rate cut in March is only 25%. The high interest rate environment may hinder the upward trend of gold prices, but every time it takes advantage of the situation, there may be an ideal market entry price. Looking forward to this week, the United States will announce CPI and the chairman of the Federal Reserve will attend the hearing and give a speech, saying that both of them have implications for the Fed's interest rate at the end of the year and need attention. The market situation is a bit different, so let's refer to each other.