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Weekly Summary (11/4/2022)

War and inflation dominated market emotion with gold rising to two-week highest position.

USD Index broken 100 on Friday. At the same time, the gold rose at this week end period. The main market emotion continued to be affected by the Russian Ukrainian war and inflation. The US dollar rise was accompanied by the rise safe haven products.

At present, there has no obviously progress in the Russian Ukrainian war. The Russian army has withdrawn from Kiev and focused its attack on the eastern region. It can be seen that the Russian army has been frustrated in its attack and turned into the loosely defended northeast of the Ukrainian army so that maintain the certain strategic victory. It can be inferred that the battle will be long-term and slow and military has little impact on the financial market.

The financial and economic sanctions against Russia are gradually heating up. Although they are no longer as fierce as at the beginning of the war, the sanctions continue to increase. US President Biden signed a ban on importing Russian oil and suspending normal trade between the two countries. Add the previous sanctions basically exclude Russia from the international financial system. It can be expected that even after the war, the Russia,which with a single economic model will face a certain degree of difficulties for a long time.

However, it is undeniable that the Russian Ukrainian war and the expectation of global inflation are still the strong theme of the market. This week it also stimulated the flow of funds into the gold hedging product market. The gold price has been sought after and promoted, rising to a new high in the past two weeks. It is expected that another decline may be affected by the new tightening remarks of the Federal Reserve.

Gold prices are expected to continue to rise slightly this week, focusing on the attitude of countries towards Russia and whether the Federal Reserve has released new measures and remarks which is generally bullish.

Technical analysis:

In the early stage of this week, the price rose from brin to above the middle line and the price fluctuated mainly in the range of 1915-30. Later this week, the price rose to 1937 in the first stage and then continued to rise, reaching a high of 1948.20. After that, it briefly searched for correction but still out of the upward trend, market closed at 1945.19 in the end It is expected to maintain the rising situation on Monday and may break through the 1950 position.

Important information of this week:

Tuesday: 20:30 us march CPI annual rate (%)

Wednesday: 20:30 US retail sales rate in March (%)

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