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Weekly Summary (22/11/2021)

Gold entered downward zone, this week depends on three factors

Last week the price of gold was dominated by the following downward trend. On the premise that the price continued to rise and continued to decline last week due to callback inertia and fundamental reasons. The fundamental reason mainly on the decline in crude oil prices eased the inflationary pressure slightly, limited the price of gold above. In addition. The Fed's expectation of raising interest rates is gradually warming up in the market which also puts pressure on oil prices.

Next week, the United States enters the Thanksgiving consumption cycle which will driving the overall upward trend of the market, but gold is more sensitive to the dollar. Whether the Fed's interest rate hike is expected to continue to rise is still the key to gold prices.

16th Nov China and US two sides exchanged views on many issues. The two sides should expand the "cake" of cooperation. China attaches importance to the appeal of American business people who hope that China can provide convenience to China and has agreed to implement an upgraded version of the "fast track", which is believed to further promote China and US economic and trade exchanges and help the economic recovery of the two countries. The United States should stop abusing and generalizing the concept of national security to suppress Chinese enterprises. It is necessary that China and the United States to maintain macroeconomic policy communication, support world economic recovery and prevent economic and financial risks. The US side should pay attention to the spillover effect of domestic macroeconomic policies and adopt a responsible macroeconomic policy.

There is no higher priority than human life. Unity and cooperation are the most powerful weapon for the international community to overcome the epidemic. To deal with major epidemic situations, it needed a scientific attitude and politicize the disease problem which will do all kinds of harm but no benefit. The urgent task of the global anti epidemic is to crack the vaccine deficit and eliminate the "vaccine gap".

The meeting broke the ice cold state of China and US relations in the medium term. The easing of China and US relations is that the market has received positive emotions at the level of regional politics and major country relations, and in other side, gold has lost its attraction at the level of risk avoidance.

On November 15, US President Joe Biden officially signed the US $1.2 trillion bipartisan infrastructure construction bill which puts forward six priorities for rebuilding US infrastructure, strengthening manufacturing, creating high paying jobs, developing the economy and solving the climate change crisis, so as to provide preliminary guidelines. The large-scale infrastructure project plan will drive the growth of the industrial economy and the rise of the US dollar, and clamp down on the price of gold.

There are still three important messages to focus on this week:
1. US inflation and related data.
2. Changes in the heat of the market's expectation of the Fed's interest rate increase.
3. Epidemic situation.

Given that the fundamentals are close to each other, it is more likely that the gold price will fluctuate in the range of 1800-1050 this week.

Technical analysis:

Last week, the trend in the brin zone was steep as the price led the graph to a downward trend. The overall price range is in the range of 1842-1876. The exposure at the end of the trading expanded, and the price turned downward. By the end of the trading, the price was in the downward market.
On MACD, the price trend distribution is relatively average. In the early upward trend, the speed line enters above the zero axis, and then goes down in the medium term. The kinetic energy is below the zero axis. The market enters the downward market, and it is still in the obvious downward range at the close, with no upward sign.

Important information this week:

Wednesday: 21:30 the number of Americans who renewed their claims for unemployment benefits for the week ended November 13 (10000)

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