On Tuesday (March 17) in early Asian trading, spot gold traded around $5005.87 per ounce. Gold prices fell slightly on Monday as concerns that the ongoing Middle East conflict could push up inflation, leading to higher interest rates for an extended period, outweighed support from a weaker dollar.

Although the dollar index has retreated from a 10-month high, making dollar-denominated gold more attractive to overseas buyers, rising oil prices will push up inflation, thus weakening central banks' willingness to cut interest rates, which is bearish for gold, a non-interest-bearing asset. Spot gold fell 0.5% to $4993.42 per ounce, hitting its lowest point since February 19 during the session. This week, market focus will shift to the Federal Reserve policy meeting and Chairman Powell's speech, with interest rates widely expected to remain unchanged.

From the daily chart for spot gold, yesterday's price action was mainly range-bound, resulting in a doji candlestick pattern. Although prices rebounded somewhat today, the MACD indicator remains in a bearish crossover, suggesting the pullback may not be over yet. The resistance level from the 5-period moving average (MA5) should be monitored.

From the 4-hour chart for spot gold, after a period of wide-range fluctuations, yesterday's price opened lower at the bottom of the trading range. There were signs of a rebound back into the range, but the MACD lines are currently converging, indicating a period of directional uncertainty. The future direction remains unknown. Intraday, attention should be paid to the resistance around 5040. Resistance: 5040-5050-5060 Support: 5030-5020-5010.

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.