Despite the shock of high international gold prices on Wednesday, the west's energy war with Russia continued to boost risk aversion, and gold prices are expected to rise to $2118 after the market is expected to rise to $2118, despite expectations of a Fed rate hike.
Spot gold fell 0.2 per cent to $2049.51 / oz at 1448 Beijing time; the main COMEX gold contract rose 0.83 per cent to $2060.8 / oz; and the dollar index fell 0.12 per cent to 98.998.
Gold holdings in SPDR Gold Trust, the world's largest gold-listed fund, rose to 1067.3 tonnes on Tuesday, the highest since March 2021.
Gold is highly sensitive to rising US interest rates, which increase the opportunity cost of holding gold, a non-interest-bearing asset. Higher interest rates will also boost the dollar, putting pressure on dollar-denominated gold.
The Fed is widely expected to raise interest rates for the first time in more than three years at its meeting next week. Some investors now worry that the Fed will have to raise interest rates to control rising inflation, although geopolitical instability could hit growth and could lead to a recession.
U.S. president Joe Biden announced a ban on imports of Russian oil and other energy on Tuesday, while Britain announced that it would phase out imports of oil and petroleum products from Russia by the end of 2022. The European Union has unveiled a plan to reduce its dependence on Russian natural gas by 2/3 this year. Oil prices have soared more than 30% since Russia, the world's second-largest oil exporter, invaded Ukraine.
On the daily line, the gold price started the upward trend of five waves from 1779 US dollars. According to the hour chart, the gold price may start the upstream ((iii)) trend from US $1878, approaching the 100% target of US $2072, and is expected to rise further to the 123.6% target of US $2118. ((iii)) waves are the sub-waves of 5 waves.
