Last Friday (March 7th), international gold experienced volatility and closed lower. At the end of the US trading session, spot gold was at $2908.22 per ounce, down $1.97 or 0.07%. During the session, it reached a high of $2930.33 per ounce and a low of $2895.99 per ounce. Market sentiment was influenced by Federal Reserve policy expectations and global economic uncertainty, keeping gold prices in a short-term fluctuating pattern.
Impact of Federal Reserve Policy Expectations on the Market
Federal Reserve Chairman Jerome Powell stated on Friday that the Fed would not rush to cut rates until the effects of trade, immigration, fiscal, and regulatory policies under the new Trump administration became clearer. He emphasized that the Fed is focused on changes in the economic outlook and will make decisions when future data is clarified, "We are in no hurry and have the ability to wait for clearer prospects."
Powell's speech coincided with declines in the US stock market and bond yields, increasing market volatility. Recently, Trump announced high tariffs on Canadian and Mexican imports but later postponed their implementation, complicating market sentiment. Powell noted that while the overall economic situation is good, consumer spending has slowed, and businesses face increasing uncertainties about the future. Although key economic indicators remain stable, growth is uneven.
Analysis of Gold Market Positions and Technical Aspects
Data from the US Commodity Futures Trading Commission (CFTC) shows that as of March 7th, the holdings of the world's largest gold ETF decreased to 894.34 tons, a reduction of 4.30 tons compared to the previous trading day, indicating a decline in short-term risk aversion demand among investors.
From a technical perspective, gold's weekly trend remains high and volatile. Although the short-term adjustment range is limited, prices are restricted within the $2890 to $2930 range. The 4-hour and hourly charts show that short-term gold price movements lack sustainability, with the market tending towards fluctuating recovery, waiting for new breakout signals.
Overall, the short-term gold market is influenced by Federal Reserve policy expectations, global economic uncertainty, and market risk sentiment, and will continue to fluctuate within a range. Investors should pay attention to future Fed policy statements and the impact of Trump administration's economic policies on the market.
