Gold Trading Reminder: The rise in gold prices is blocked at the 2200 mark, so be vigilant against the two major downsides

Daocheng Technology Financial News - On Wednesday (March 27), at the beginning of the Asian market,Spot goldNarrow range oscillation, currently trading in 2178.52dollar/Ounce. Gold prices rose slightly on Tuesday, briefly approaching the 2,000 mark during the sessionFederal ReserveThe expectation of a rate cut has strengthened, but withUnited StatesDurable goods orders were stronger than expected.Dollar indexThe price of gold narrowed its gains to 0.3% and closed at $2178.49 an ounce.

Investors continue to wait for data to be released later this week to understand underlying inflation trends, which will help determine the timing of interest rate cutsforeign exchange documentaryInvestors can also contact customer service for consultation. There are also some bulls taking profits near the 2000 integer mark, limiting the rise in gold prices.

(Daily chart of spot gold)

Bob Haberkorn, senior market strategist at RJO Futures, said: "Towards the summer, you will see gold move higher in anticipation of a rate cut unless the Fed changes its stance or announces that it will cancel a rate cut, which I don't think they will do at the moment."

The focus of market attention is the US core personal consumption expenditure price index data to be released on Friday.

"If the [PCE] data is higher than expected, then gold could pull back, but I expect those losses to be recouped quickly," Haberkorn said.

Due to the Good Friday holiday, the market's reaction to the data may not be seen until next week.

US durable goods orders rose more than expected in February, while corporate spending on equipment also showed tentative signs of recovery, and the outlook for economic growth in Quarter 1 remained optimistic. But with the November presidential election looming, President Joe Biden and Republican challenger Donald Trump will face off again. A World Business Research survey on Tuesday showed Americans are increasingly worried about the political environment, while fears of an economic recession over the next 12 months have eased.

Durable goods orders rebounded, partially reversing a sharp drop in January and suggesting that manufacturing may be regaining its footing after struggling after the Federal Reserve sharply raised interest rates.

Andrew Hunter, deputy chief US economist at Capital Economics, said: "Data points to a recovery in corporate equipment investment and yields are likely to fall further in the coming months, although manufacturing activity appears to be picking up and we think there is still some way to go."

Orders for durable goods rose 1.4 per cent month-on-month in February, the US Bureau of Statistics said. January data was revised down to a 6.9 per cent decline from a 6.2 per cent decline. Economists surveyed had expected orders for durable goods - items from toasters to airplanes that last three years or more - to rise 1.1 per cent.

Orders for durable goods rose 1.8% year-on-year in February. Shipping orders climbed 3.3% in February after plunging 18.3% in January. Orders for civilian goods rose 24.6% in February after plunging 63.5% in January. Orders for automobiles and parts rose 1.8%. Orders for primary metals rebounded 1.4% and orders for metal processing rose 0.8%. Orders for machinery rose 1.9%.

Manufacturing accounts for 10.3% of the economy, and the outlook for manufacturing is steadily improving on expectations that the Federal Reserve will begin cutting interest rates this year.

A survey by the Institute for Supply Management this month showed that U.S. manufacturers were fairly optimistic about sales and operating conditions in March. Manufacturing output rebounded in February. But the sector is not out of the woods yet. Orders for computers and electronics fell 1.4 percent in February, while orders for electrical equipment, appliances and parts fell 1.5 percent.

Shannon Grein, economist at Wells Fargo, said: "We continue to see some early signs of recovery in the production data, although we think a more sustained recovery is months away."

Orders for non-defense durable goods excluding aircraft rose 0.7 percent in February after falling 0.4 percent in January, a barometer of closely watched corporate spending plans.

Gold hit an all-time high of $2222.39 last week after Federal Reserve policymakers said they still expect to cut rates by 75 basis points by the end of 2024. Currently, traders see a 71% chance of a rate cut in June.

The price of gold also continued to be supported by increased household physical demand in some countries, and the record rise in gold prices did not hurt the desire to buy.

WisdomTreecommodity"These currencies were weaponised in 2022 after the Russian-Ukrainian conflict, so their motivation for buying gold is to stay away from G7 currencies," said strategist Nitesh Shah.

Economists at Commerzbank said: "Markets are focused on the new US inflation data for February, due on Friday. The PCE deflator is the Fed's preferred inflation gauge. Our economists believe these numbers are more likely to indicate that inflationary pressures remain high. If that is the case, gold prices may be giving up their recent gains. ETF investors are at least once again more sceptical: after several days of heavy inflows, there has been another outflow since the middle of last week."