Affected by the cooling of risk aversion and the recovery of U.S. bond yields, international gold fell from an intraday high of $1,948 to around $1,925 on Wednesday, down nearly 1% on the day. This trading day (March 3)gold priceAfter dropping to $1,921, it rose again, and it has stabilized at the 1930 mark in the European session. Russia and Ukraine hold the second round of talks. If the talks do not go well, the risk aversion in the market may heat up again, which will push the price of gold to rise further.
In terms of news, the war between Russia and Ukraine is still ongoing. The first round of negotiations between the two sides did not achieve the expected results. The second round of negotiations was postponed from March 2 to March 3 local time. The latest progress in the negotiations may have a short-term impact on international gold prices. Volatility has a big impact. The continuation of the Russian-Ukrainian war may exacerbate the tension in the global supply chain, push up prices and accelerate inflation, while high inflation is beneficial to the price of gold.
The head of the parliamentary group of the Ukrainian People’s Servant Party, Allahamia, said on March 2 that the negotiations between the Ukrainian and Russian delegations will not be held in the Belovezh Forest in Belarus. statement does not correspond to the facts.
According to Ukraine’s Interfax news agency, Alahamia posted on social media that Ukraine and Russia will indeed conduct a second round of negotiations, but the place of negotiation is another place.
On March 3, local time, sources said that the location of the second round of Russia-Ukraine talks may be changed to other places in Brest Oblast, Belarus. The source said that Russia and Ukraine have not yet made a final decision.
Analysts pointed out that if the talks between Russia and Ukraine do not go well, the market risk aversion may heat up again, which will push the price of gold to rise further.
Yesterday, analysts pointed out that gold has replaced U.S. Treasuries as the safe-haven first choice as the conflict in Ukraine intensifies and worries about soaring oil prices and inflation have flooded the market, reducing the attractiveness of bonds.
Holdings of SPDR Gold Trust, the world’s largest gold exchange-traded base, rose to 1,042.38 tonnes on Tuesday, the highest level since July 2021, the latest statistics showed.
Gold-backed ETFs saw inflows of $1.1 billion in the week ended Feb. 20, bringing purchases to $4.8 billion this year through the end of February, a stark reversal from last year. Last year, gold saw a net outflow of $1 billion, the highest level since 2013.
Analysis of international gold trend
In terms of trend, the price of gold is still running above the rising trend line, with multiple parties in a dominant position, and the market has strong bullish sentiment. On the monthly chart, gold rose close to the upper track of the Bollinger Bands. Previously, the price of gold fell back due to resistance here, and the upside of gold prices is still limited; on the weekly chart, the price of gold runs above the upper track of the Bollinger Bands, and the Bollinger Bands open upwards, and the moving average indicator is long. Arrangement, the MACD golden fork diverges, the red energy column increases in volume, and the bulls are overall dominant; on the daily chart, the Bollinger Band is running upwards, the moving average indicators are long lined up, the MACD golden fork, but the upward momentum of the DIFF line and the DEA line slows down, red The volume of the energy column has decayed, showing that the power of many parties has weakened.
Tips:The market is changing rapidly, investment needs to be cautious, and the operation strategy is for reference only.
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