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Weekly Summary (7/3/2022)


Dollar / gold rise together as Ukraine situation continues control market moving

The dollar and gold rose together last week while other commodities also gained significantly, with the U.S. non-farm payrolls recording new high data 678,000 in February. The situation between Russia and Ukraine continues to dominate the financial markets and market continues to maintain a risk aversion. Gold topped out at 1970 while crude oil prices also rose sharply due to the situation in Ukraine.

Friday's U.S. February non-farm payrolls data recorded 678,000, much more than the previous and expected value. At the same time, the unemployment rate data also lower than the previous value, the overall data is good which was indicating that the U.S. job market kept running well and healthy. After the data was released, gold price fell to 1920 area for a short period of time, but then continued upward to maintain the upward trend.

Last week, the overall gold price keep driven by the situation in Ukraine risk aversion and was maintaining high uptrend, given the decline in the stock market downturn state which can be assumed that the funds in the stock market partly into gold crude oil and other commodity products. The gold market has room for further gains but the upcoming interest rate hike likely to weigh on gold.

The Fed's rate hike resolution for the March 15 meeting can be considered almost certain, 25 basis points belong to the probable conclusion, but the situation in Ukraine pushed up commodity prices, whether it will constitute a factor affecting the Fed's resolution still has room for controversy. The gold price likely to continue climbing in the next two weeks but the factor of interest rates will constitute a pull to make the price retracement.

The situation in Ukraine remains very tense and Russia has just issued instructions to its military to continue operations in Ukraine. International encouragement and sanctions against Russia are intensifying, the ruble is at an all-time low nd economic sanctions against Russia will continue and intensify given that the war is not over. It remains to be seen what decision Russia will make to follow up on the situation.

In this week, gold prices will continue to maintain the upward trend, 2000 key positions need to be given considerable attention. In addition, the Fed's remarks will also have a short-term impact on prices. Except for the sudden information, the situation in Ukraine still the most important fundamental information that dominates the market.

Technical analysis.

Last week, prices showed rising - shock - sharp rise in the trend, the early prices rose from the 1910 zone to the 1950 zone, followed by a pullback and shock to maintain, Friday non-farm payrolls data stimulated price fell in short time. Market closed in 1968 position.

In addition to the short-term price retracement within the range, prices have been in the upper Bollinger band orbit range in the last week. This indicates that there is a large price momentum above and after Friday the price continuously pierced the upper rail line, the uptrend obvious and strong, finally closed at a high level. Because of the strong upward momentum, there may be a jump higher opening positon on Monday.

Important information for this week.

Thursday: 21:30 U.S. initial jobless claims for the week ending March 5


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