Weekly Summary (5/7/2022)
Dollar shocks weaker and stimulating gold to rally during this week
Gold prices have shaken to the downside so far last week with prices moving down from a high position 1832 to 1784, before rebounding at the start in the week and forming a V-shaped reversal and currently at 1808.
International gold prices are slightly higher on the shocks as a short-term rally as weak US Treasury yields keep gold prices steady above the $1,800 mark and as dollar bulls take a short break for the holidays. But gold prices seem unlikely to strengthen for much longer, as managed funds and large speculators are increasing their short bets on gold. Federal Reserve policymakers last week solidified expectations for further monetary policy tightening, suggesting another 75 basis point rate hike in July.
The dollar has continued to shock and weaken through Monday of this week and the Fed's firm stance on inflation resistance has strengthened the market's inertia expectations for the dollar, limiting the rally in gold prices.
Market prices will likely continue to maintain the oscillating slightly downward trend this week. The current 1809 price may oscillate within the 1790-1820 price range. The non-farm payroll data released this Friday will be a very important indicator and may also indirectly ease or further stimulate gold prices. Monday's U.S. Independence Day holiday market is relatively light, the market is currently waiting for Friday's non-farm payrolls data, the
Technical analysis.
Last week, the market price mainly showed an oscillating downward trend, the price in the 1820 range down to 1780 range, down the process of the market continuous piercing the lower Bollinger band line, to the bottom of the price up, crossed the upper track line, and currently remains in the upper track range, showing an upward trend. The current price shows a dramatic oscillation trend, the main observation is whether the continuous upper rail line can be judged by the short-term trend.
Important information for this week.
Tuesday: 22:00 U.S. May factory orders monthly rate (%)
Friday: 20:30 U.S. June non-farm payrolls change quarterly (million)
