Weekly

After 8 weeks of continuous rise in gold, technically, it is severely overbought. Last week, it borrowed strong US dollars and was heavily sold off by profit taking liquidation orders. At the beginning of the week, the gold price was unable to break through, and most investors hoped that the gold price would soon break through the 3000 mark. However, after hitting a new high on Monday, it still could not stabilize above 2950, causing buyers to be wary of high levels. Later, US President Trump announced the scheduled 25% tariff on Canada and Mexico on March 4th, and an additional 10% tariff on China. The market's expectations for the temporary suspension of tariffs were dashed, and the US dollar was sought after by funds and strengthened, gradually putting pressure on gold.

On the one hand, the market believes that prioritizing the United States will be beneficial to the US economy. If there is a trade war, the US dollar will still be a safe haven for funds and is worth docking; On the other hand, after increasing tariffs, there is a greater chance of triggering inflation, and the Federal Reserve tends to have less room for interest rate cuts in the future, even reversing and starting to raise interest rates, which greatly boosts the performance of the US dollar.

After repeatedly testing below 2900, the gold price finally fell before the weekend and only rebounded after falling to 2832 on Friday night. Overall, it has not yet deviated from the selling trend. Looking ahead to this week, the upcoming tariffs and the opportunity for the European Central Bank to cut interest rates will boost the performance of the US dollar, with Friday night's labor market data also being a key focus.

The market has repeatedly postponed the expectation of a US interest rate cut because the US labor market has never worsened. If the non farm payroll figures can remain above 140000, it is believed that the Federal Reserve does not need to cut interest rates, and may even consider maintaining high interest rates for a longer period of time to prevent inflation, which will also affect the performance of gold prices. Looking at the market, we can refer to each other.