Gold market analysis

If we look at the weekly chart, gold has reached a new high and closed above 3,350 for the first time. Benefiting from the weakness of the US dollar and the fact that gold prices have fluctuated for four weeks, there has been support from bargain hunters. As Trump threatened to impose additional tariffs on the EU over the weekend, gold prices rose sharply by 60 dollars and closed near the weekly high. 

Last week, the United States released few economic data. The market was more concerned about geopolitical risks. The situation between Israel and Palestine and the Russia-Ukraine peace talks did not bring much improvement. Gold prices held steady at 3200 and then started to rise. After climbing nearly 100 dollars, they hovered around 3300. The range began to expand again. However, the biggest breakthrough occurred on Friday. Trump proposed to increase tariffs on the EU to 50%. Market risks rose. Trump's tariff policy once again came to the fore. Trade imbalances and tariff policies had previously led to a "triple kill" of the US dollar, US stocks, and US bonds. Risk sentiment was reignited, driving funds to flow into the precious metals market for safety. Gold prices broke through the weekly high of 3345 and remained stable. They rose to a maximum of 3365 dollars and closed near the high, closing with a strong bullish candle. 

Looking ahead to this week, gold prices have broken through the neckline of the double top and rebounded, regaining strength. It is expected that the strong momentum will continue at the beginning of the week. There will be PCE inflation data at the weekend. After the trade war, there has been no significant increase in price levels. If the PCE still shows mild inflation, the Federal Reserve may accelerate the pace of interest rate cuts to support gold prices. How to view the market situation? We can refer to each other.