After the California banking regulator closed Silicon Valley Bank (SVB), the price of gold rose 2% on March 10.On March 11, the state regulator also closed Signature Bank, which is headquartered in New York.Due to market concerns about the stability of the banking system, the dollar fell sharply, which pushed gold prices higher in the short term.
In addition, with the outbreak of a crisis in the U.S. banking industry, expectations of the Fed's interest rate hike have cooled, and Goldman Sachs even expects that the Fed will not raise interest rates in March, which will limit the rise of the dollar and boost gold.
Although the Silicon Valley Bank incident, the U.S. Treasury Department has taken steps to ensure the safety of all depositors' funds, helping to ease the panic in the market.However, in essence, the U.S. Treasury Department's actions have not broken the rigid redemption, which is not conducive to market clearance, or will bury more hidden dangers. Therefore, in the short term, the crisis of trust and run crisis caused by this banking crisis may continue to ferment.The current market's lack of confidence in the US dollar and the cooling of expectations of the Fed's aggressive pace of interest rate increases will also support gold to continue to rise.
At the same time, whether gold prices can continue to maintain an upward state still needs to be observed in the data, especially the specific situation of the US CPI data for February.
From the technical point of view, the gold price forms a W-bottom pattern structure on the 4-hour level chart, which helps to support the upward movement of the gold price. Although the current weakening of the upward momentum has led to a decline in the gold price, as long as it does not fall below the 1870 line, gold still has the opportunity to touch the 1900 or even the 1920 line upwards.
In addition, with the outbreak of a crisis in the U.S. banking industry, expectations of the Fed's interest rate hike have cooled, and Goldman Sachs even expects that the Fed will not raise interest rates in March, which will limit the rise of the dollar and boost gold.
Although the Silicon Valley Bank incident, the U.S. Treasury Department has taken steps to ensure the safety of all depositors' funds, helping to ease the panic in the market.However, in essence, the U.S. Treasury Department's actions have not broken the rigid redemption, which is not conducive to market clearance, or will bury more hidden dangers. Therefore, in the short term, the crisis of trust and run crisis caused by this banking crisis may continue to ferment.The current market's lack of confidence in the US dollar and the cooling of expectations of the Fed's aggressive pace of interest rate increases will also support gold to continue to rise.
At the same time, whether gold prices can continue to maintain an upward state still needs to be observed in the data, especially the specific situation of the US CPI data for February.
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The current price of gold has exceeded 1900