Everbright Futures 0317 Gold Commentary: U.S. dollar safe-haven demand declines, overnight gold fluctuates within a narrow range

Hot Topics

Selected Stocks Data Center Market Center Capital Flows Simulated Trading

Client

Overnight London Spot Gold remained volatile within a narrow range, COMEX gold futures fell by 1%, SHFE gold dropped 0.86%. The Middle East conflict continues, the International Energy Agency (IEA) has agreed to deploy 400 million barrels from emergency strategic reserves. The U.S. calls on countries to help clear the Strait of Hormuz, while several Middle Eastern countries seek alternative routes to restore oil exports. Overnight, crude oil prices sharply declined, the dollar’s safe-haven demand decreased, and gold initially fell then rose. This week, the Federal Reserve’s monetary policy outlook is highly focused on; this is the first meeting since the U.S.-Iran conflict. The current surge in oil prices has affected various assets. Fed officials will focus on the impact of energy shocks on inflation and economic growth. Watch for when gold prices will return to an upward trend; be patient and wait for the right moment.

Geopolitical Outlook: The U.S.-Iran conflict persists. Last night, Trump hinted at attacking the Halek Island oil facilities and called for escorting ships through Europe and other regions. However, other U.S. officials are more about calming the markets. U.S. Treasury Secretary Janet Yellen stated that the Strait of Hormuz faces supply challenges, and the U.S. government tacitly allows Iranian oil tankers to pass to maintain global energy supply balance and prevent prices from soaring out of control. Additionally, this week will see the Federal Reserve’s March policy meeting, with the rate decision and dot plot released early Thursday. The market generally expects no change, but focus remains on how Powell assesses the dual risks of inflation and growth triggered by the Middle East conflict and oil price surges. The U.S.-Iran conflict remains a key focus in gold trading. It is recommended to adopt a buy-the-dip strategy. Whether future expectations are inflation or stagflation, gold’s strategic position will strengthen. Under liquidity concerns, investors have opportunities to buy on dips.

Written by: Li Qi

Professional Qualification: F3046227

Trading Advisory Qualification: Z0016145

Disclaimer: The information in this report is sourced from public data. Our company makes no guarantees regarding the accuracy, reliability, or completeness of this information, nor do we guarantee that the information and advice provided will not change. We strive for objectivity and fairness in the report content, but the views, conclusions, and suggestions are for reference only and do not constitute specific product or business recommendations or operational guidance. Investors are responsible for their own investment decisions and risks, and our company and authors are not liable.

Sina Partnership Platform, Everbright Futures Account Opening, Safe and Secure

Massive Information, Precise Analysis, All on Sina Finance App

Editor: Zhu Hennan