Daily

The absence of U.S. markets, which were closed for the U.S. President's day holiday on Monday night, had a noticeable impact on trading sentiment, with little volatility in currency markets and solid gold prices.

European stock markets are generally on the up side, with the U.S. resuming trading tonight and manufacturing data expected to send volatility back to normal, with the dollar and gold still holding together.

We saw gold close at a high over the weekend, but we didn't see any active buying at the start of trading yesterday. I believe it was due to the holiday, so we didn't see any immediate continuation of the gold rally.

The dollar also continued to strengthen. The euro has fallen slowly to its lowest level in more than three months, but it has seen no support.

The economy has been severely affected and the European Banks have also loosened monetary policy earlier, but it has not worked. Recent economic data in Europe have shown that the euro zone economy still lags behind other industrial countries.

The expectation that the European central bank will cut interest rates further or issue more debt to increase market liquidity to save the economy means that the euro should maintain its downward trend last year.

The decline accelerated, with many big Banks cutting their euro forecasts, the euro will soon lose 1.08 support, will hover around the 1.07 level to find support.

During the outbreak of the new coronavirus, global stock markets continued to perform well, reflecting the market's tendency to believe that the outbreak was short-lived and that tipping points could be very close.

But gold's investors don't seem willing to play the same game wholeheartedly as the stock market, where a degree of caution and risk aversion still keep prices high,

As soon as the market opened this morning, the gold price rose again and reached its highest level in a month. As long as the gold price remained stable above 1580 and maintained its momentum, it would soon challenge the psychological level of 1600.

Although the dollar weighted index is also strong enough to challenge the 100 mark, global interest rates will continue to flow into the gold market.

With U.S. markets rebounding tonight, trading is starting to pick up, and the New York fed manufacturing index for February will be released in the evening. Early in the month, the manufacturing index showed signs of picking up. The ISM index's return to 50 led to the beginning of the dollar's rally,

Also keep an eye on the 9:30 reading tonight. A reading above 5 on the New York fed index would be considered positive and would support further dollar strength, although it would not necessarily weigh too heavily on gold.

Technically, the gold price has broken through the lower consolidation area, as long as it stays above 1580, it can continue to test the 1600 mark up, the outlook is still strong, the dollar and gold prices are likely to continue to rise in tandem.