Gold Daily | Weaker Dollar and Trade War Concerns Support Gold, Eyes on U.S. Inflation Impact

【Latest Gold Price and Recent Trends】

On Monday, gold prices showed a slight increase due to a weaker dollar and concerns over a global trade war. Spot gold remained steady at $2,910, with fluctuations between $2,896 and $2,918. The dollar's weakness is making gold more attractive to overseas buyers.

【Technical Analysis】

Gold is maintaining its position above the 21-day moving average at $2,911, indicating bullish sentiment. If gold breaks the static resistance at $2,930, its upward trend may gain momentum, with further resistance at historical highs of $2,956 and $2,970. Conversely, if the price falls below the 21-day average, it faces support at the psychological level of $2,850 and further at $2,835.

【Market Sentiment and Economic Background】

Concerns over U.S. tariff policies and geopolitical developments are affecting market sentiment. The announcement of potential tariffs on Canadian lumber and the consideration of tariffs on Russia have increased uncertainty. Investors are cautious, especially before the upcoming U.S. CPI and job vacancy data. February's labor market report showed lower than expected job growth, rising unemployment, and a declining participation rate, prompting expectations of further Fed rate cuts.

【Analyst Opinions】

Analysts suggest gold remains a "buy on dips" commodity due to its value storage and inflation hedge capabilities. The U.S. inflation report may affect Fed rate expectations and gold prices. If the core CPI rises less than anticipated, it could bolster expectations for a Fed rate cut, supporting gold prices. Conversely, a higher CPI could strengthen the dollar, challenging gold's upward momentum. Analysts are optimistic about gold reaching the $3,000 level soon.