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Weekly Summary (28/12/2021)

Gold enters the upward channel and market focusing on Omicron

From last week to Monday, the gold price rebounded under pressure and the highest price rose to more than 1813. Affected by the Omicron virus the gold hedging function began to play an effect, and the price entered the rising range.

The impact of COVID-19 on the US economy is still enormous. Many flights and freighters have to cancel the original transport plan due to the epidemic and other reasons, resulting in stagnation and a large number of Americans' plans for Christmas travel are affected.

Although President Biden announced his action strategy to curb the latest epidemic last week and continued to urge people to vaccinate, the chief infectious disease expert in the United States warned that the number of cases in the United States will increase in the next few days and may exceed the carrying capacity of the medical system, especially in areas with a high proportion of unvaccinated people.

In addition to the United States, the situation in Europe affected by the virus is also not optimistic. The number of confirmed cases in France has exceeded 100 thousand for the first time, and the number of hospitalized COVID-19 has doubled in the past month. The rapid spread of the variant has made the French government's efforts to avoid the implementation of the new travel blockade complex. More than one in every 100 people in Paris tested positive in the past week. Most of the new cases are related to the Omicron variant which government experts predict will dominate France in the next few days.

At present, it is close to the end of the year and the market trading is likely to be less and small. the main factors needing attention in the market are the situation of the Omicron virus and the relevant news of the Federal Reserve. Last week's high jump indicates that the market has entered a safe haven rising range but the upper resistance still exists. At present, we mainly focus on the 1790-1820 price range. This week was dominated by shocks and a slight upward trend.

Technical analysis:

From last week to Monday, the price basically jumped to 1813. Last week there was a high jump opening which was indicating that the market has entered a risk aversion rising range, and the price form is more optimistic. The Bollinger belt channel is in the state of reduced exposure in the form of narrow amplitude shock and opens sharply after jumping high, indicating that the price has entered the rising stage. The price rose significantly on Monday night, basically in the upper range of the Bollinger belt channel.

On MACD, the kinetic energy line is still below the zero axis but the double line is above the zero axis with obvious deviation. It shows that the price has strong resistance on the way to rise and market in the state of adjustment. At present, it is a rising zone and the kinetic energy turns positive, and the double line is above the zero axis.

Important information this week:

Thursday: 21:30 US initial jobless claims for the week ended December 25 (10000)

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