In mid-March, the price of gold rose sharply from $1,830 to $1,914 per ounce. The opening price was $1,903.66 per ounce on Wednesday, equivalent to $2,293 per tael.
Last week, three main US employment indicators for February were released, pushing up gold from a day low of $1,827.14 per ounce to a closing price of $1,866.99.
The disappointing jobs data also meant there was a lack of positive factors in the US economy to support its currency.
Average Hourly Earnings data was at 0.2 per cent, 0.1 per cent down compared to the previous month, while the Non-Farm Employment Change indicated there was only a 193,000 increase in jobs on the previous figure of 504,000.
The Unemployment Rate increased to 3.6 per cent, 0.2 per cent higher than the previous month.
With those three job-related figures, the trend for gold continued to move up strongly on Monday, with a high price of $1,914.60 per ounce.
Additionally, Silvergate Bank – which described itself as “a Federal Reserve member bank and the leading provider of innovative financial infrastructure solutions and services for the digital asset industry” – closed on March 8.
This was followed by the shutting down on March 10 of Silicon Valley Bank – the US’ 16th largest bank – and the New York-based, full-service commercial bank Signature on March 12.
“With three US banks collapsing in a week, the financial markets now feel less confident about the strength of the US dollar as it has implied US economic uncertainties,” says Long Samnang, a business manager at PP Link Securities (PPLS).
Based on technical analysis, Samnang says that with the four-hour and one-week chart patterns, the trend could be for gold to rise from $1,809.21 per ounce, the lowest price in March, possibly moving up to around $1,914 per ounce.
“For this week’s trading recommendation, the trend of gold will fluctuate between $1,855 to $1,949 per ounce.
“Therefore, investors and traders could consider setting buy positions or waiting to buy between $1,900 to $1881 per ounce, setting the take-profit function at $1,935 per ounce and the stop-loss at $1,857,” Samnang says.