Gold falls below the 2900 mark as technical indicators resume a downward trend
(February 28) During Asian trading hours, spot gold saw a slight rebound. As the week closes, gold prices appear set for their first decline of 2025. Influenced by a surge in the US dollar, prices plummeted to their lowest level in over two weeks on Thursday. Gold's daily candlestick chart shows a significant drop, initiating a short-term downward trend. The price fell below the 2900 mark and closed at a low, with the MACD also showing a bearish crossover. There is still room for further short-term adjustment.
Time:
2025-02-28 16:41
During Asian trading hours on February 28, spot gold saw a slight rebound after fluctuating. As the weekly chart is about to close, gold prices appear poised for their first decline of 2025. Influenced by a surge in the US dollar, prices plummeted on Thursday to their lowest level in over two weeks. The daily candlestick chart shows a significant drop, initiating a series of consecutive downward adjustments. The price fell below the 2900 mark and closed at a low, accompanied by a bearish MACD crossover, suggesting further short-term adjustments are likely.
Reports indicate that Trump has confirmed tariffs on Mexico and Canada will be implemented on March 4, and that reciprocal tariffs will be imposed on April 2. The Canadian Prime Minister responded that if the US imposes tariffs, Canada will respond immediately and strongly. Regarding the UK, Trump stated that tariffs would be unnecessary if a trade agreement is reached.
On February 27, local time, according to Reuters citing Interfax, Ukrainian President Zelenskyy arrived in the US on February 27, according to flight information. Earlier, US President Trump stated that he would meet with Zelenskyy at 11 am local time on February 28. The two will discuss a minerals and rare earth development agreement.
The US will release the January Personal Consumption Expenditures (PCE) price index on Friday, the Federal Reserve's preferred inflation indicator. The January PCE price index is expected to rise 0.3% month-over-month and 2.5% year-over-year.
Bart Melek, head of commodity strategy at TD Securities, said that significant deviations from the projected PCE data could trigger negative reactions, as markets worry that the Fed may be less willing to cut interest rates.
The market currently expects the Fed to cut interest rates at least twice this year, with a total reduction of approximately 55 basis points.
The daily gold price chart shows increased bearish potential as gold is breaking below the bullish 20-day simple moving average (SMA), the first time it has done so since January 7. The price remains well above the bullish 100-day and 200-day moving averages, but technical indicators maintain a firm bearish slope, approaching the midline from above.
The recent 4-hour chart shows spot gold continuing its downward trend, breaking below both the 20-period and 100-period SMAs. Shorter-term moving averages are gaining downward momentum above longer-term averages. Meanwhile, technical indicators have resumed their downward trajectory, approaching oversold readings, maintaining strong bearish momentum and predicting lower lows for gold prices.
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