On Wednesday, the gold market finally rebounded after a series of sharp falls, with the spot gold price approaching the $1700 / oz mark, up more than $10 on the day.
Hot event
ECB President Christine Lagarde said that if the ECB believes it is necessary, then the anti-epidemic bond purchase program PEPP can be extended beyond March 2022, it is not immutable. When the ECB decides to phase out the plan, policy makers will give sufficient advance notice to avoid market anxiety, volatility or similar fluctuations that have occurred in the past. Lagarde also said that if investors try to push up yields, the ECB will use all policy tools to respond, investors can feel free to test the ECB.
The American Chamber of Commerce said the tax increase in Mr Biden's proposed infrastructure plan was "dangerously misleading".
The Bank of Japan plans to slow the pace of all-maturity bond purchases in April.
Heavy data
ADP employment in the United States changed by 517000 in March, with an expected number of 550000, compared with a previous value of 117000.
The contracted sales index of existing homes in the United States in February was-2.7% compared with the same period last year, with an expected 6.5%, with a previous value of 8.2%.
The contracted sales index of existing homes in the United States in February was-10.6% month-on-month, expected to be-3%, and the previous value was-2.8%.
Gold prices regained their downward trend after being suppressed by the middle rail of the Bollinger line for a period of time, with MACD forming a dead fork, KDJ running with a dead fork, moving average bears, K line showing that downward momentum still exists, lower focus on support near the March 8 low of 1676.91, and key resistance above $1700 / oz.
Outlook for the future
Gold has been hard to invest in the past two quarters, but the fundamentals are still there, said Steve Dunn, director of ETF at Aberdeen Standard Investments. Gold prices are expected to rise to between $1900 and $2000 an ounce by the end of the year and hit a new high early next year.
Hareesh V, head of commodities research at Geojit Financial Services, said that gold's performance on Wednesday was only a technical rebound, not a reversal of the trend, and that the overall trend of gold was weak. "all fundamentals are on the weak side, especially the stronger dollar and Treasury yields and better economic data. If gold falls below $1665 an ounce, there will be a further sell-off. "
Mike McGlone, senior commodities strategist at BI, said the gold market appeared to be "dormant" and that Bitcoin could be a big impact. "unless something happens to stop money flowing into Bitcoin, the upside of gold prices will continue to be restricted." Gold prices will be stuck in the $1600-$1900 / oz range, with little room for upside or downside.
