Gold price pressure between 1720-30

On Tuesday (March 13), in the Asian market, the price of gold was consolidating on the small Yang Xian, with resistance at 1725 above and below 1700. On Monday (March 12), the Xiaoyin Line was closed, with the highest at 1716.00 above and the lowest at 1692.60 below.

Yesterday, the EU finance ministers and the euro zone finance ministers held a meeting in Brussels. The current round of discussions focused on whether to approve the second round of 130 billion euros in aid payments to Greece. For now, the euro zone finance ministers have already replaced the Greek debt plan. Expressing support, if the eventual gains will boost the euro and market confidence, the short-term will also support the rebound of gold and silver.

The Fed will announce the latest interest rate decision and issue a policy statement at 02:15am on March 14th. The market expects the Fed to keep the low interest rate of 0-0.25% unchanged, and the low interest rate policy will continue until the end of 2014 for the relevant third. Quantitative easing (QE3) will not give any hint, and the US dollar index may form a pressure, so non-US currencies and precious metal commodities will use the opportunity to rise.

As of March 13th, the world’s largest gold exchange deal** (ETF)'s gold positions have remained unchanged, to 1293.68 tons, while silver to lighten up 10.58, to 9752.67 tons.

The short-term gold and silver are mainly adjusted by shocks, but the overall trend of the year remained unchanged. After the current round of gold and silver corrections, the midline has already prompted layout transactions.

In terms of form, the spot gold price fluctuated above 1700 and ended the rally of 3 waves. Spot gold prices plunged back to the 1700 mark after dropping below the 200-day moving average, but the important resistance zone at 1720-30 above is still strong.

If the price of gold cannot break through here, the risk of further decline in the market will be huge. The 21-day moving average and the daily rail of the Tublin Channel are also located within the 1720-30 area. The forecast for fluctuations in the gold price between 1680 and 1730 is maintained during the day.

In terms of technical indicators, the MACD held steady near the zero axis, and the stochastic indicator rebounded from the oversold region. In the Bollinger Bands, the spot gold price rose back to near the bottom of the middle rail; the moving average system was staggered.

Long-term trends: bullish; short-term trends: Shocks bearish.

Key resistance: 1725.60,1729.07,1763.00; Key support: 1700.10,1687.55,1680.68.

At 13:44 GMT, today's gold price was reported at $1703.12 per ounce.

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