Analyst: Mr. Chris Lau Independent Analyst
In early Asian trading on Tuesday (February 15), spot gold rose in shock after the opening bell. The market rose from 1869.9 to 1878.8, an increase of about 9 US dollars, and is now reported at 1876.4 US dollars per ounce. Looking back on yesterday's market, the price of gold fell in the Asian session on Monday, and then stabilized at the 1850 support position. During the European and American session, stimulated by the risk aversion news, it broke through Friday's high and touched the 1873.9 line, and finally closed at 1871.1 US dollars per ounce. There is a Yang K with a lower shadow closing on the daily line.
On the news front, the tension between Russia and Ukraine is the focus of the market at this stage. As the saying goes, "When the cannon goes off, the gold is ten thousand taels." Gold prices closed higher on Monday as tensions escalated as Russia deployed troops on the Ukrainian border and warned Ukraine not to join NATO, and geopolitical risks spurred demand for safe-haven gold. Generally speaking, the rise in the market driven by risk aversion is not sustainable. If Russia and Ukraine have peace talks or tensions ease, gold may fall sharply, so it is necessary to pay attention to the development of the situation.
In addition, we need to pay attention to the inflation situation in the United States. Yesterday, although the New York Fed released a survey report suggesting that inflation may be easing, the PPI data released tonight will more intuitively affect the market trend. In general, geopolitics and high inflation support the upside of gold prices, but the Fed's interest rate hike environment has also limited gold's gains.
Technically, the daily gold price pierced the upper track of the Bollinger Band, and the KD indicator was at a high level. We should pay attention to whether the market can effectively break through the previous high of 1876, while the 4-hour chart Bollinger Band expanded, and the KD indicator was bonded at a high level. At present, the situation in Ukraine and Russia supports gold to go higher, but in the technical graphics, the price of gold is close to the resistance level, which may cause the market to fall back. Therefore, it is recommended to step back and focus on long positions.
Resistance position：1876/1884/1888
Support position：1866/1860/1853
Investment Advice：
Long around 1868，stop loss 1865，target profit at 1876/1882/1888。
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