On Thursday (March 4) Asian market in early trading, gold opened up, rising from 1707.9 to 1716.5, an increase of about 9 US dollars, and the price now at 1711.8 US dollars per ounce. Looking back at yesterday’s market, the overall market performance on Wednesday showed a downward pressure. During the Asian session, it fluctuated between 1728 and 1736. During the European and American session, gold fell below the 1720 line. It finally closed at 1710.7 US dollars per ounce, and a bearish candle stick with a lower shadow was closed on the daily chart.

On the fundamental, the recent focus of the market is on the curve of U.S. Treasury yields. The performance of U.S. bonds is closely related to gold. The high yields of U.S. bonds increase the opportunity cost of holding non-yielding gold and weaken the attractiveness of gold. The fall in U.S. Treasury yields on Tuesday triggered a decline in the US dollar, and spot gold gained a respite, once approaching the US$1,740 per ounce mark. But just yesterday, the latest news about the new coronavirus vaccine in the United States came. Biden said that by the end of May, the United States will have a sufficient number of new coronavirus vaccines for every adult in the country for injection, which is two months earlier of schedule. Boosted by this news, U.S. Treasuries continued their rally, rising to 1.49%. Gold price also fell due to the impact of rising U.S. Treasury yields.

About the US economic stimulus package, there is more and more evidence that Biden’s $1.9 trillion is about to hand. The large-scale economic plan has triggered concerns about inflation, although it did not trigger an increase in the actual inflation rate. But still limited the rise in U.S. Treasury yields. Recently, more and more well-known authorities have pointed out that the US stock market may have a bubble crisis, and the prosperity of the stock market is seriously deviated from the actual economic recession, which has triggered a risk aversion. Although the high yield of U.S. debt continues to weigh on gold, supported by inflation and risk aversion, the decline in gold shows signs of slowing down.

Technically, the U.S. dollar index is close to the upper rail of the Bollinger Bands in the daily chart, and KD death cross is at a high level; the 4-hour chart stands above the middle of range, and the KD golden cross is up; the 1-hour market pierces the upper price of the range, and KD is at a high level. The US dollar index is on the strong side, but there are signs of downward revision in the short term. Spot gold at the lower position of the Bollinger Bands on the daily line, the market in the 4 hours chart is also close to the lower price. the upper Bollinger Band opens downwards in 1 hour, and the market is currently suppressed under the middle rail. KD golden cross. On the whole, spot gold has short-term rebound momentum, but long term gold is still weak.

Resistance：1718-1725-1731

Support：1707-1700-1688

Today’s Recommendation：

#1 Place Buy Order at 1710/1708，Stop Loss at：1706，Take Profit at：1716/1723/1730。

#2Place Sell Order at 1720/1722，Stop Loss at：1726，Take Profit at：1712/1707/1701。

Analyzed by：Mr. Chris，Independence Analyst