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Weekly Summary (2/5/2022)

Gold fell in week end and US market all line contracted

On Friday night the US stock market suffered a heavy blow, US dollar index rose and fell and the highest price of gold in last week hit 1920. However, after rising continuously it made a sharp correction and closed at 1897.41 at the end of last week The price correction was more than 20 US dollars from the weekly high position.

In the first quarter, the annualized rate United States GDP unexpectedly decreased by 1.4%, marking a sudden reversal of the best period of economic expansion in the United States since 1984. The increase of new crown cases and the decrease of government rescue funds pushed up the kinetic energy of gold as a safe haven fund earlier in last week, making the gold pick in the downward channel form a V-shaped reversal. The hawks of the Federal Reserve launched hawkish remarks which further strengthened the rise of gold prices. However, on Friday night, due to market conditions such as US stocks it lost sustained confidence and pulled down the spot gold price including safe haven products.

Russia and Ukraine have largely lost willingness to resolve their problems through negotiations, with the two sides forming a showdown in the Spartan region and Russia terminated its gas supply to Poland on Wednesday, further strengthening the antagonism with the West and discouraging investors in the geopolitical arena.

This week's trade strategy:

At present, the investment market in a depressed state and there is a serious lack of market confidence and momentum, mainly due to the influence of international politics, US GDP data in the first quarter and fed policies. It is expected that the spot gold price will not improve in this week and will continue to hover at a low level. It is necessary to pay attention to the risk of short jump and opening on Monday. Profit closing can be considered for buying positions below 1890 and open sell positions at 1890. The target price is 1870

Technical analysis:

In the early stage of last week the price was in a downward trend, reaching the lowest position of 1870 and then rebounded upward to 1920 A sharp correction was made at the end of the week and closed at 1897.41 on Friday. In the upward trend in the second half of the period, the price did not continuously pierce the brin belt and put it on the track. The rising range was relatively mild which was forming slow climbing market. The late correction was relatively strong, pierced the middle track line and then went down. At present, it is in a downward trend.

Important data of this week:

Tuesday: 22:00 final value of durable goods monthly order rate of US in March

Wednesday: 20:15 US April ADP employment data.

Thursday: 02:00 USD may federal funds rate target ceiling / floor

Friday: 20:30 non-farm payrolls in the United States in April

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