#Middle East Situation##GoldTechnical Analysis#24K99 News: On Thursday (March 20), during the early Asian market, spot Gold saw a short-term surge, with the price just touching $3055.56 per ounce, setting a new historical high. Foreign media reported that two UN workers in Gaza were killed due to an Israeli military attack, and the escalating geopolitical tensions have driven safe-haven Bids towards Gold.

FXStreet Analyst Christian Borjon Valencia pointed out that the USAFederal Open Market Committee(FOMC) made a decision on interest rates, and Gold prices reached a new milestone. Federal Reserve Chairman Powell mentioned the rising economic uncertainty and tariff-driven inflation; the Fed is expected to lower interest rates twice in 2024.

Valencia also stated that as the ceasefire negotiations between Russia and Ukraine have stalled, and Israel has intensified airstrikes, the geopolitical tensions have escalated, boosting safe-haven demand.

Gold also continued its rebound trend from Wednesday's New York session. The Federal Reserve maintained interest rates as the market expected, but indicated that there would be another rate cut before the end of this year, which drove Gold prices higher.

Spot Gold closed up $13.16 on Wednesday, an increase of 0.43%, reported at $3047.08 per ounce.

In contrast to gold prices, the U.S. real yield fell by 5.5 basis points on Wednesday to 1.935%. The U.S. 10-Year Treasury Notes Yield decreased by 3 basis points to 4.254%.

Independent metal trader Tai Wong stated: "The uncertainty has increased due to the mixed signals from the Federal Reserve in its statement and economic forecast, which has led to a rise in gold prices. Gold has entered a bull market after breaking through the $3000 per ounce level strongly; due to uncertainty in the asset market and concerns over rising inflation, gold will continue to rise."

After the Trump administration introduced tariff measures, the FOMC maintained its policy interest rate in the range of 4.25%-4.50%, while officials raised this year's inflation expectations and lowered economic growth expectations.

Federal Reserve Chairman Powell mentioned tariffs for the first time at the post-meeting press conference and acknowledged that Trump's policies impact the economy. Additionally, Powell pointed out that the policies introduced by Trump’s new government will affect the economy, but he will cautiously avoid making overly explicit judgments about that impact.

Powell also repeatedly used the term "uncertainty." He reiterated that there is uncertainty regarding the potential impact of tariffs on the U.S. economy and emphasized the risks facing the Fed's employment and inflation expectations.

Last week, President Trump raised the tariffs on steel and aluminum imports to 25% and stated that new reciprocal tariffs and industry tariffs would be implemented on April 2.

Federal funds futures indicate that traders expect a 62.1% chance of the Federal Reserve cutting rates again at the June meeting, up from 57% before the Fed's interest rate decision was announced on Wednesday.

Reports say that two United Nations staff members in Gaza were killed due to an Israeli military strike.

In terms of geopolitical situation, hostilities between Russia and Ukraine continue, although both sides have reached a 30-day ceasefire agreement to stop attacking energy facilities. Meanwhile, the conflict in the Middle East has escalated, with Reuters reporting that Israel's airstrike on Tuesday resulted in 400 deaths.

A United Nations insider revealed to AFP on Wednesday that two UN staff members were killed in an attack on the UN building in the central Gaza Strip city of Deir al-Balah.

According to AFP, sources indicate that the two deceased were staff members of the United Nations Office for Project Services (UNOPS) and the United Nations Mine Action Service (UNMAS).

The Gaza Health Ministry earlier stated that an Israeli military strike on a UN office resulted in the death of one foreign staff member and five others were seriously injured, but the Israeli military denied this.

The Health Ministry said in a statement: "One foreign staff member of the UN agency was killed, and five others were injured as a result of the occupying forces bombing their headquarters."

The Israeli military denied in a statement that it had attacked the UN building in Gaza, saying: "Contrary to reports, the Israel Defense Forces did not strike the UN complex in Deir al-Balah."

A military spokesperson told AFP: "I confirm that the Israel Defense Forces did not carry out any actions there and did not attack the UN site."

On Wednesday morning local time, the Israel Defense Forces continued military operations in the Gaza Strip, launching multiple rounds of shelling on the al-Bureij refugee camp in central Gaza.

The Gaza Civil Defense Agency reported on Wednesday that since midnight, Israeli airstrikes on Gaza have resulted in 13 deaths.

So far this year, Gold prices have risen by over 15%. In times of economic or geopolitical instability, Gold is often seen as a safe investment, and due to its non-yielding nature, it becomes even more attractive in a low-interest-rate environment.

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FXStreet Analyst Christian Borjon Valencia pointed out that the upward trend of Gold remains intact. Gold prices have broken through the psychological barrier of $3050 per ounce, setting a new historical high.

Valencia stated,Relative Strength Index (RSI) Converted to overbought, but due to the strength of the upward trend, it is still below the level of 80. Gold prices are expected to continue the upward trend and challenge the key level of 3100 USD/oz.

(Spot Gold daily chart Source: FXStreet)

On the other hand, Valencia added that conversely, if gold prices drop below 3000 USD/oz, the firstSupport.will be the high point of 2954 USD/oz on February 20, followed by the key level of 2900 USD/oz.

As of 08:24 Beijing time, spot gold is quoted at 3055.56 USD/oz.