(True or False Question) 152. The strategic asset allocation derivative strategy only needs to be realized by buying and selling stock index futures in the futures market, and does not need to be carried out in the stock market.

This week’s Federal Reserve’s FOMC meeting and non-agricultural data are still the highlights of the gold market. Alex Manzara, vice chairman of RJ O’Brien & Associates, believes that the reduction may continue as scheduled when the impact of previous extreme weather subsides and the data improves.

The activities of Russian troops near the Ukrainian border have made investors increasingly worried about an escalation of the conflict. However, analysts say the general view in the gold market is that although the situation in Ukraine may worsen, Europe and the United States may not intervene in the conflict other than imposing a new round of sanctions on Russia.

Gold’s net long position increased for the first time in five weeks, which is good for gold prices. A report released by the U.S. Commodity Futures Trading Commission (CFTC) over the weekend showed that as of April 22, 2014, the net long position in gold futures held by speculators increased by 2,541 lots to a net long of 81,833 lots, the first in five weeks. The increase is due to the recent escalation of the situation in Ukraine, which stimulates rising risk aversion.

Institutional Gold Comments

Tian Manwen, a researcher at Jingrui Futures, said that on the one hand, the situation is currently turbulent because we don’t know what Russia will do next. But gold's upside is limited because the conflict is unlikely to spread beyond Ukraine.