Gold Stopped Falling and Rose Higher, Boosted by Non-Ferrous Metals

Market trend: The main Shanghai gold contract 2106 stopped falling and rose. The intraday trading was at 377.82-372.12 yuan/g, and it closed at 376.66 yuan/g in late trading, which was 1.13% higher than the closing price of the previous day. The trading volume was 177,000 lots. Increased 13,871 hands; positions held 125,000 hands, a daily increase of 1319 hands; Shanghai Bank’s main 2106 contract also stopped falling and rose, closing at 5744 yuan/kg in late trading, up 3.64% from the previous day’s closing price.

Market focus: The Asian dollar index stopped falling and rose slightly, and is currently trading at 90.46, up 0.1% daily. (2) The Federal Reserve's semi-annual monetary policy report: It will continue to provide "strong support" to the economy.

Domestic positions: The top 20 long positions of Shanghai Gold's main 2106 contract were 56932 hands, 35195 short positions, and 21,737 net long positions. The top 20 long positions of the Shanghai Bank 2106 contract were 231,816 hands, short positions 212,508 hands, net long positions 19,308 hands, and short Masukura was greater than long.

External holdings: As of February 19, SPDR Gold Trust gold ETF holdings were 1127.64 tons, a weekly decrease of 14.58 tons, falling for six consecutive weeks to the lowest level since June 9, 2020. At the same time, Shares Silver Trust's silver ETF holdings amounted to 19,243.26 tons, a weekly decrease of 306.23 tons, falling for two consecutive weeks to a new low since February this year.

Market research and judgment: On February 22, the precious metals on the Shanghai stock market stopped falling and rose. Among them, the growth of silver futures was still better than that of gold futures, and Shanghai gold was still below the moving average group. Long and short transactions were obvious. During the period, the overseas epidemic situation was optimistic, and the market’s expectation of economic recovery increased effectively to boost the market. The base metal copper and tin once rose at a daily limit, and the price of silver rose due to its industrial properties. Under the pressure of upward US bond yields, gold futures have weak rebound momentum. Technically, the MACD green column of the gold futures line shortened, but the hourly KDJ indicator turned down. The silver and daily KDJ indicators cross upwards, but the hourly MCD red column shortens. Operationally, it is recommended that the main force of Shanghai Gold can sell high and buy low between 380-370 yuan/gram, and stop loss at 5 yuan/gram each. Shanghai Bank's main bulls should lighten up and wait and see.

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