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Weekly Summary (30/08/2021)

Last week's price rise benefited from Powell's moderate remarks


Last week, the gold showed an overall upward trend with the highest position in 1820 and finally closed at 1818.03 which created a new high position in the month. US Federal Reserve Chairman Powell said that he would make narrow the bond purchase plan this year and would not consider raising interest rates. He stressed the continuity policy in interest rates and alleviated the market's concerns about currency fluctuations.

Powell said that the Fed will reduce the scale of bond purchase this year and will not raise interest rates within this year. But it still has some uncertainty about the spread of the new crown variant virus Delta and the new number of infected people. The US employment data in July were relatively strong, but the situation of COVID-19 also intensified. It also needed to carefully assess the uncertainties and risks brought to the economy. The Fed will continue to maintain and policy support for a relaxed financial environment.

Powell particularly stressed that reducing the scale of debt purchase does not mean raising interest rates and the United States will not have a plan to raise interest rates this year. These remarks are relatively more moderate, which has put pressure on the rise of the dollar and is more conducive to the pull of gold.

The security situation in Afghanistan is still not optimistic. The U.S. military helping Afghan refugees evacuate was attacked at the Afghan airport and 13 U.S. soldiers were killed. At present, security is still a major problem and there is a geopolitical crisis.

 The spread and additions of COVID-19 are at present stable and there is no big outbreak. The situation in the coming week is relatively optimistic.

This week focuses on the security situation in Afghanistan, the new remarks and policies of the Federal Reserve, etc. At present, the bullish voice in the gold market is high but at present, the price is already at the high point of the middle line. We need to pay attention to the shocking trend of the market. It is safer to look at light positions.

 This Friday's non-farm data forecast believes that it may be stronger than the previous value, and there may be a correction. If the data goes back it may further stimulate the rise of gold prices.


Technical analysis:

The price fluctuated in the early part of last week but the moving average generally showed a state of cross entanglement, basically fluctuating from 1780 to 1800. Late last week, prices rose sharply, from 1780 to 1820, and the 5-day moving average led the upward trend. The MACD speed line also rose across the zero axes, the kinetic energy line rose sharply, and finally, the price closed at a monthly high of 1819.

The current indicators indicate that the price is in a strong upward trend. It is necessary to observe the trend of the 5-day moving average and the intersection with the 10-day moving average during the opening of this week. On Monday mainly considered stabilizing the shocking trend and the shock range maybe 1810-1820.

Important news and data of this week:


Wednesday: 20:15 US ADP employment in August (10000)


Thursday: 20:30 Initial jobless claims in the United States for the week ended August 28 (10000)


Friday: 20:30 Non-farm payrolls in August (10000)

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