Biden is planning a big plan to raise taxes. The international gold price falls into the shock test and the key resistance level is 1735.

Spot gold rose slightly yesterday after a slight correction at the beginning of the Asian session, but remained around $1730. At present, the trend of the gold price is hesitant, and analysts say that if the gold price wants to be bullish, it needs to effectively break through 1735 US dollars.

A quick overview of the market

[foreign exchange] the dollar rose against most Gmur10 currencies on Monday, with the dollar index rising 0.15% to 91.80, as traders cut short bets on the dollar to a four-month low amid recent gains in Treasury yields and were cautious ahead of the Fed's policy meeting this week. Among the Gmur10 currencies, the New Zealand dollar is the strongest.

[precious Metals] Precious Metals were strong yesterday as the dollar rose. Spot gold rose slightly to close at $1731.71 an ounce as investors await the results of the Fed's monetary policy meeting this week to gauge the next move in gold prices. COMEX April gold futures closed up about 0.6% at $1729.20 an ounce.

[stock market] all three major indexes of US stocks closed higher. The Dow closed up 173.50 points, or 0.53%, at 32952.14; the S & P 500 closed up 24.80 points, or 0.63%, at 3968.14; and the Nasdaq composite index closed up 139.84 points, or 1.05%, at 13459.71.

[oil market] oil prices fell, falling more than 2% at one point in intraday trading, amid fears that energy demand could be hit again by the epidemic. WTI April crude oil futures closed down 22 cents, or 0.33 percent, at 65.39 U.S. dollars per barrel, while Brent May crude oil futures closed down 34 cents, or 0.49 percent, at 68.88 U.S. dollars per barrel.

Fundamental concern

[Biden is planning a tax increase]

Last week, US President Joe Biden signed the epidemic relief bill, and massive stimulus measures will undoubtedly continue to push up the deficit. However, President Joe Biden plans to raise federal taxes sharply for the first time since 1993 to help finance a long-term economic project, according to people familiar with the matter. The White House is expected to propose a series of tax increases, mainly echoing those put forward by Biden during his 2020 campaign.

Us President Joe Biden is planning the first major federal tax increase since 1993 to raise money for a long-term economic plan to follow the pandemic stimulus bill, according to media reports. It is reported that compared with the $1.9 trillion pandemic stimulus bill, the next long-term economic plan is expected to be larger and will not rely solely on government borrowing as a source of funding. Finance Minister Yellen has said that at least part of the revenue in the next bill will come from taxes and will consider raising tax rates.

It is said that some bills have been considered for inclusion in the bill, including an increase in the corporate tax rate from 21% to 28%; an increase in the personal income tax rate for individuals earning more than $400000; an expansion of estate tax coverage; and an increase in the capital gains tax rate for individuals earning at least $1 million a year.

[Japan and the United States will start "2-2" talks]

Us Secretary of State Brynn (Antony Blinken) and US Defense Secretary Austin (Lloyd Austin) have arrived in Japan to prepare for the 2-2 ministerial meeting and security talks. The Japanese news agency (Kyodo News) quoted Japanese government sources as saying that the talks focused on the challenges of China's rise.

The visit to the United States, which will last from March 15 to March 18, is an important meeting following the conclusion of the Quartet security dialogue by the United States last week. Japanese experts say the issues on the agenda include China, semiconductor supply chain security, North Korea and Burma's military. While Japan will attend the meeting will be Japanese Foreign Minister Motegi Toshimitsu and Defense Minister Shinsuo Kishi, while Lincoln is expected to visit Japanese Prime Minister Suga Yiwei after concluding the ministerial meeting.

After concluding their visit to Japan, Blinken and Austin will continue to travel to South Korea for meetings. After his visit to Asia, Brin Lincoln is scheduled to meet with Chinese ministers in Alaska on Thursday. The meeting between China and the United States has attracted international attention, and this is the first contact between senior officials of the two countries since the inauguration of the new Biden administration.

Spot gold in the future

Adrian Ash, head of research at BullionVault, believes that the recent downward trend in gold prices will be suspended, if not near the end. With Treasury yields and real interest rates now trading sideways, the current price of gold looks set to hold out. He believes that the long-term trend of gold prices is still upward, with $1700 as a rest area for gold prices and a springboard to rise to $2000 in summer.

Kevin Grady, chairman of Phoenix Futures and Options LLC, said that shorting gold is very dangerous under the current circumstances, but it may not be profitable to be long at the same time, so he is currently neutral on gold prices.

Charlie Nedoss, senior market strategist at LaSalle Futures Group, believes that gold prices need to maintain the level of $1700 / oz, short covering may be temporary, if the dollar and interest rates continue to rise, gold prices will be under pressure.

Economies.com, a well-known financial information website, wrote in the article that the gold price is currently showing an upward trend and is close to the key resistance of $1735.00 / oz in the test. If the gold price breaks through this resistance, it will push the gold price up further, with the first target at $1755.00 / oz, and the rally may even continue to $1765.00 / oz. But if gold stays below $1735.00 an ounce of resistance, this will keep the bearish trend valid for some time to come.