On Thursday (April 1) Asian market in early trading, spot gold opened, rising from 1705.6 to 1711.7, an increase of about $6, and is now reported at $1709.5 per ounce. Looking back at yesterday’s market situation, the overall market on Wednesday showed a trend of first decline and then rise. During the Asian session, it fell to a daily low of 1677.7 and then stabilized. During the European and American session, it rose moderately. It stood on the 1715.1 line, and finally closed at $1707.2 per ounce, with a positive K on the daily line.

On the news, the ADP data released last night performed poorly, with an expected value of 550,000 and an announced value of 517,000. Although there was a significant improvement from the data in February, the overall performance was not as good as expected, which provided impetus for the rise of gold. At present, the focus of the market is on the infrastructure plan implemented by the United States. The US media reported that the Biden administration will launch an eight-year $2.25 trillion infrastructure expenditure plan. The news of the stimulus plan did not inject strong upward momentum into gold because the market is more concerned about the role of infrastructure plans for economic recovery, which limits the rise of gold prices to a certain extent.

In terms of the epidemic, it can be seen from the ADP data that with the good progress of vaccination in the United States, the employment situation has improved significantly, which has provided support for the US dollar. However, the epidemic situation in Europe, South America and Southeast Asia is not optimistic. Especially in Europe, due to the shortage of vaccine doses and popular resistance to vaccination, most areas are in a state of lockdown, thus suppressing the euro and indirectly boosting the dollar index.

Technically, although the U.S. dollar index fell below the 93.0 mark yesterday, it still stood above 93.0 in the late trading. The daily market was running on the Bollinger Bands, and KD was at a high level. It was running near the middle rail in one hour, and KD was death cross. The US dollar index showed signs of correction on the technical side, but the overall trend was volatile due to the decline of the euro and the adventurous sentiment in the market. Spot gold is close to the middle rail of Bollinger Bands on the daily line, KD low golden cross, standing above the middle rail in 4 hours, KD high dead fork. The wave of gold’s rise on Wednesday swallowed up Tuesday’s decline. In a short period of time, the market showed signs of retreating, and it is more appropriate to retreat to lower levels.

Resistance: 1712-1719-1725

Support: 1704-1696-1692

Investment Advice:

# Buy gold at 1698/1702, stop loss: 1694, target: 1712/1718/1723.

Analyzed by：Mr. Chris，Independent Analyst