Technical analysis: Spot Gold signals are mixed, pay attention to this key position.
On Tuesday (March 11) during the Asia session, spot Gold rebounded slightly and is currently trading around $2896.52 per ounce. Reuters technical Analysts pointed out that the technical signals for spot Gold are somewhat mixed. It has successfully stabilized near the $2879 Resistance level per ounce and has started to rebound, with the key Resistance to watch above being around $2909. During the period from March 4 to March 7, a temporary top was formed within the Range of $2894 to $2927. This indicates a target level of $2861. However, after a brief confirmation, as Gold prices rise to this pattern.
Technical analysis of spot Gold on March 10.
Recently, market expectations regarding the Federal Reserve's monetary policy have changed. Although Federal Reserve Chair Powell indicated there is no rush to adjust interest rate policy, the latest data shows a slowdown in USA economic growth and signs of cooling in the labor market, which has led investors to increase their bets on interest rate cuts by the Federal Reserve this year. "The slowdown in USA economic growth may lead the Federal Reserve to adopt a more accommodative monetary policy in the coming months, which supports Gold." — A renowned economist. As expectations for rate cuts rise, USA Treasury yields have decreased, enhancing the attractiveness of Gold. The USD has recently continued to decline, recording its largest weekly drop since 2022 last week.
Gold Trade Reminder: Gold prices are fluctuating at high levels, affected by risk aversion demand and slowing employment growth in the USA, with high bullish sentiment in the market.
On Monday (March 10), during the early trading session in Asia, spot Gold fluctuated within a narrow range, currently trading around 2915.60 USD/ounce. Gold prices had previously experienced three consecutive days of high fluctuations, but the weekly increase remained at 1.85%, supported by an inflow of safe-haven funds, and the USA employment report showing job growth in February was below expectations, indicating that the Federal Reserve is likely to cut interest rates this year. Additionally, the erratic changes in President Trump's tariff policies have also intensified uncertainty. The USD fell to a four-month low last week and is set to record the largest weekly decline since November 2022, making Gold, priced in USD, cheaper for foreign buyers.
World Gold Council: Will the tariffs from the USA affect the gold market?
In the future, the Gold market may still experience temporary fluctuations. However, there are indications that over time, the depth and liquidity of the Gold market are sufficient to withstand most shocks.
By the end of February, both the scale of foreign reserves and Gold reserves have slightly increased. With high gold prices, experts remind to weigh profits against risks.
① As of the end of February, China's Forex reserves amounted to 3,227.2 billion USD, an increase of 18.2 billion USD compared to the end of January. The decline in the USD roughly drove the rise in the prices of non-USD assets in China's foreign reserves by about 10 billion USD; ② At the end of February, the People's Bank of China held 73.61 million ounces of Gold, an increase of 0.16 million ounces compared to the end of January.
In February, China's Forex reserves increased, and the central bank expanded its Gold reserves for four consecutive months.
As of the end of February, China's Gold reserves were 73.61 million ounces, an increase from 73.45 million ounces at the end of January, showing a growth of 0.22%. As of the end of February 2025, China's Forex reserves stood at $3227.2 billion, an increase of $18.2 billion from the end of January, representing a growth of 0.57%.