Although a few Fed officials continued to deliver hawkish speeches, some members suggested raising interest rates seven times this year, which was supposed to provide a lot of support for the dollar, their strength was still not enough to reverse the gold rise. The uncontrollable inflation and the situation in Russia and Ukraine keep driving the demand for gold. The so-called "buying gold in troubled times", as the market is full of various uncertainties. Gold is a safe-haven asset. There is also an increase in ETF holdings. Gold's rising fundamentals remain positive.

Technically, although the daily chart of gold has risen and fallen since March 9, the upward trend has not changed. Let’s talk about the overall pattern of gold first; following the above, not breaking the bottom 1,820, and the general direction is still an opportunity for the bulls. It jumped from 1,880 to $2,000 in early March and fell below 1,900. For a healthy uptrend, a proper pullback is also reasonable. Similarly, $1,900 is also a support level for the pullback ratio of 0.618, so gold has Conditions that create a rebound. If we need to calculate with an extension ratio of 1:1, the measurement target can reach $2,175. In other words, the previous high of $2,070 is not the peak.

Switch to the 4-hour chart to analyze the subtleties. The rhythm of the last wave of decline was continuous Lower Low and Lower High, but starting from 17 March, the Low of gold has not been extended, until the night of 24 March, it broke through the horizontal range, creating a Higher High of $1,950. It shows that the market has broken the fall, which means that it will rise, and the three basic trends of the market (falling, rampant, rising) will only continue to cycle. According to the current trend, it comes out of the volatile situation during the callback, and the tendency to buy on dips is favourable.

Based on the above conditions, gold will start its second wave of rising since 1st February. The lower $1,910 needs to be held steady, and the upper first level is $2,000. After reaching the target, it is expected to make appropriate withdrawals and then make efforts to stand up. The second level is $2,070, looking forward to another all-time high!

Hugo Leong Gold Analyst of Hantec Group