With the conflict between Russia and Ukraine

　　With the conflict between Russia and Ukraine, the risk aversion of precious metals has been cooled down

　　With Russia's announcement of recognizing the independence of the two regions of Ukraine and the East, the situation in Russia and Ukraine continues to escalate. However, from the perspective of the direction of the escalation, the economic sanctions against Russia are still dominated by Western countries. In the short term, the possibility of war is reduced, and the market has a risk aversion. After cooling down, safe-haven currencies such as the Japanese yen and the Swiss franc fell with gold. Biden announced that he would impose sanctions on Russia's two major financial institutions and elites. German Chancellor Scholz announced that in the context of the escalating conflict between Russia and Ukraine, the German government will stop the approval process for the “Nord Stream-2” natural gas pipeline project. The EU passed the first round of sanctions against Russia, involving 351 members of the Russian Duma and 27 entities. Britain freezes the assets of five Russian banks and the three richest people. Ten countries including Britain, Denmark and Sweden will hold military exercises in the Baltic Sea. The Ukrainian president said he would consider the proposal of the Ukrainian foreign ministry to cut diplomatic ties with Russia. The Russian parliament approved Putin's deployment of armed forces outside the country.

　　Looking at the market outlook, the situation in Russia and Ukraine still does not rule out the possibility of war and is expected to support precious metal prices. However, the current situation sees economic sanctions as a way out, and the risk aversion is expected to be difficult to continue to heat up soon. Precious metals are expected to remain high and volatile. In terms of interest rate hikes, according to the CME Fed observation data, the probability of the Fed raising interest rates by 50bp in March has returned to 35%. In terms of fund holdings, SPDR gold ETF holdings remained unchanged yesterday, and the world's largest silver ETF--iShares Silver Trust holdings increased by 11.5 tons to 17,156.59 tons from the previous day. In terms of data, today's focus on the euro zone CPI data. In terms of operation, short-term US gold is expected to fluctuate at a high level, and more orders in the early stage can take profit. Strong resistance above 1920, strong support below 1880 area.

　　Important statement: The content and opinions in this report are for reference only and do not constitute any investment advice.