The Momentum Of Gold Is Weakening.

In the early period of continuous rise, gold rally momentum gradually weakened.

In the past week, the international price of gold has again increased significantly, accumulating a slight decrease of 0.4% compared with the previous week, falling for second weeks in a row.

According to the Xinhua News Agency reported on March 19th, data show that, on the 18 day closing, the gold price in the New York market closed at $1254.3 an ounce, down 5.1 dollars from the previous week, and the gold price in Renminbi denominated also continued to callback. The gold futures contract on the Shanghai futures exchange closed at 261.7 yuan per gram, a slight decrease of 1.8 yuan compared with the previous week.

In recent weeks, the Fed's March monetary policy resolution is the focus of attention in the gold market.

As the Federal Reserve decided to maintain the current interest rate level and slow down the process of raising interest rates, the international gold price once rose sharply to the previous high level. However, with the release of the favorable policies, the kinetic energy of the rise has failed, and the profits of investors have been closed down, so that the price of gold has dropped again.

"In the absence of a new direction, the gold market showed a high volatility trend with insufficient upward energy and a limited decline."

Market analysts said that since this year, risk aversion, inflation expectations and asset demand under negative interest rates have pushed gold prices upward. International gold prices have risen by more than 19% so far.

In fact, at present

Funds show a cautious attitude towards "catching up".

The latest data released by the US Commodity Futures Trading Commission (CFTC) show that, as of March 15th, speculative hedge funds and

Net holdings dropped for the first time, and speculative net long positions dropped to 14 thousand and 800. After a week, gold futures options held by speculative funds held a net high of 13 months.

However, it reflects the fluctuation of risk aversion.

The ETF fund continued to increase its holdings. On the 19 day, the world's largest gold ETF fund SPDR held gold volume to 818.98 tons, a new high of a year and a half. In March, just 15 trading days, the fund accumulated more than 56 tons of gold, indicating that ETF fund investors are still buying gold continuously.

"Short-term gold market may continue to maintain high volatility."

To this end, the head of a private research department in Shanghai believes that due to the policy environment of hedging demand and negative interest rates, the strong pattern of the gold market is still hard to break in the short term, but it is worth investors' concern that after the previous surge, the market is expected to reproduce the outlook of the gold market.

According to the report of the Bank of France, the advance of gold is not based on strong fundamentals, and the price of gold will remain under pressure in the future when interest rates rise.