Oil prices are rising, gold prices pulled back during the session, and Huaxia Gold ETF (518850) may be a good opportunity to buy on dips.

On March 20, international oil prices rose slightly in the afternoon, and gold prices responded by retreating. COMEX gold futures are currently trading around $4,713, down $25 from the intraday high. As of 1:30 PM, the gold ETF Huaxia (518850) fell by 1.15%, while the non-ferrous metals ETF (516650) and gold stocks ETF (159562) saw their gains narrow to 0.32% and 0.25%, respectively.

From a technical perspective, the deviation of London gold prices from the 200-day moving average had previously surpassed 40%, well above the historical caution threshold of 24%, making a self-correction in the market somewhat inevitable. According to historical patterns, under a sustained bullish trend, gold prices will exhibit a healthier trajectory only when the deviation falls back to within 20%. Of course, this round of gold price increases is accompanied by an unprecedented macro narrative, and past historical experiences may also be broken.

Professionals analyze that the current tightening expectations of monetary policy have a short-term emotional impact on gold, but the core logic supporting gold’s medium- to long-term outlook, such as global central bank purchases, has not been shaken or reversed. However, the short-term market may still need to digest selling pressure and release risks. For ordinary investors, if they recognize the long-term allocation value of gold, they may consider buying on dips or sticking to a regular investment strategy, avoiding chasing highs or heavily investing.

Daily Economic News