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Spot gold rose to a five-week high, the highest intraday trading in the US reached 1355.87

Global Forex March 27th - Monday (March 26) spot gold rose to more than five weeks high, the United States intraday trading up to 1355.87 US dollars / ounce, to close at 1353.30 US dollars / ounce, up 6.4 US dollars, or gain 0.48%. The trade war between China and the United States eased on Monday, which caused the price of gold to fall to a low of 1343.4 US dollars per ounce for a time, but as the United States said it would expel 60 Russian diplomats, prompting investors to flock to safe-haven assets such as gold.


Global trade appeared to ease the situation on Monday. After the United States and South Korea agreed to amend the trade agreement, American automakers gained better market access, and Korean steel makers were hit by quotas, but avoided high tariffs.


At the same time, the "Wall Street Journal" reported that China and the United States have quietly initiated negotiations to discuss how China will further open its markets to the United States. Sources also said that U.S. Treasury Minister Mukuchin will visit China. The Foreign Ministry spokesperson Hua Chunying said that regarding the issue of Sino-U.S. economic and trade issues, including frictions, China is willing to negotiate with the U.S. on the principle of mutual respect and equality and mutual benefit and properly manage their differences. Nuchin said on Sunday that China and the United States are currently negotiating and he is optimistic that the parties will reach an agreement. White House trade adviser Navarro also issued a declaration that "the United States and China will return to the negotiating table."


As the market anticipates a significant reduction in the likelihood of a trade war, the risk sentiment will return. On Monday, US stocks recorded the largest one-day increase in two and a half years. With the bulls in the doldrums stagnating, the dollar continued to fall to a five-week low, and the US dollar index has fallen below its key support level, or alluding to further open upside.


With regard to geopolitics, Western countries have continued to expel Russian diplomats. U.S. President Trump said on Monday that it will expel 60 Russian diplomats; Germany has confirmed the expulsion of four Russian diplomats; France will expel four Russian diplomats; Poland and Latvia will expel Russian diplomats; and Polish Foreign Minister asks Russian diplomats to Before leaving April 3, Poland will take appropriate action. The diplomatic situation that continues to deteriorate is a very favorable support factor for gold.


Peter Fertig, Quantitative Commodity Research adviser, points out: "I think Gold Europe's intraday gain is mainly due to the development of this political event. You can expect Russia to take revenge."


The data released by the US Commodity Futures Trading Commission on Friday showed that as of the week of March 20, speculators reduced their net long positions by 23,822 to 121,838.
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Technically, gold has stood above the 1350 mark, with obvious technical advantages in the short term, and the upward resistance is the previous high of 1,365.90 US dollars per ounce. The current market is focusing on the new key position of 1360-1370 USD/oz, but the holding of gold above 1350 is a key factor in the short term. On the downside, 1340 has turned into support, followed by 1330 and 1320. The short-term support of gold prices is relatively stable.


In other metals, silver prices climbed 1% to $16.68 per ounce. Earlier it hit the highest of $16.79 since March 7, while platinum rose 0.4% to $950.90. Palladium fell 0.5% to $971.90.