Market Analysis: On Monday, March 2, spot gold opened higher and extended gains during early Asian trading hours. The full escalation of conflict between the U.S. and Iran has driven global financial market risk aversion to its peak, leading to a strong surge in gold as a traditional safe-haven asset. Last week, spot gold rose by 3.12% cumulatively, closing at a weekly high of $5,281.15 per ounce, a significant increase from the opening price of $5,146.59 at the beginning of the week. Geopolitical risks have become the primary driver behind the rally in gold prices.
From U.S. President Donald Trump confirming the death of Iran's Supreme Leader Khamenei to heightened tensions in the Strait of Hormuz and the interception of Iranian missiles, a series of events have continued to signal rising risks to the market, prompting large inflows of capital into gold. Some foreign investment banks even predict that if the conflict continues to escalate, gold prices could challenge the historic high of $5,800 per ounce. Investors should closely monitor geopolitical developments and key price level breakthroughs while implementing risk hedging and position management strategies.
Gold Technical Analysis: As a core safe-haven asset, gold still possesses ample medium to long-term upside potential. Influenced by weekend news, gold prices gapped higher to around $5,392, confirming a bullish trend. However, the daily Bollinger Bands have not yet widened, and a high-level divergence has appeared on the 4-hour chart after the gap-up opening. At the start of the week, a retracement is likely before another upward push. This week's trading strategy should focus on buying on dips in batches rather than chasing highs. Key support levels are at $5,310, $5,250, and $5,200. The previous high of $5,600 serves as a reference resistance level. If this level is decisively broken this week, the next target is $6,000, with further upside dependent on geopolitical developments.
Silver Technical Analysis: Supported by geopolitical tensions, silver's bullish trend is clear this week, with prices reaching a high of 96.4 at the open before entering a technical correction. The recommended trading approach for silver also emphasizes buying on dips, with a short-term target of 98. A break above this level could push prices toward 102. Key support levels are at 90 and 86. Traders should consider building long positions in batches upon stable rebounds from these levels.