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Weekly Summary (12/7/2022)

Price shaking at low levels, no new trend momentum after non-farm payrolls

On Monday (July 11), spot gold retreated lower and falling towards last week's low of $1,732.17/oz since September 2021, as the dollar index hit a new 20-year high, putting pressure on demand for dollar-denominated gold. In the face of such a strong dollar, other economies are trying to fight inflationary pressures through "reverse currency wars" - raising the exchange rate of their currencies against the dollar - seem to have more than enough power.

The U.S. economy added 372,000 jobs in June with private sector employment rebounding to above pre-pandemic levels, while the national unemployment rate remained at a record low of 3.6%. The strong report could strengthen the Fed's resolve to raise interest rates by 75 basis points again this month following June.

In addition to the impact of non-farm payrolls data last Friday, spot gold produced greater volatility, last week to this week the price fell to the 1730 range has been maintained after a narrow range of low oscillation, price fluctuations are small, the price began on Tuesday this week to maintain the price in the 1734 range, this week will continue to maintain a smaller float, the price should be in the 1720-50 range.

Technical analysis.

Last week the price produced a large drop, the Bollinger band produced a large amount of track line, this week since the maintenance of the oscillation low, the Bollinger band is relatively flat, the price around the middle line narrow movement, no trend.

Important information for this week.

Wednesday: 20:30 U.S. June CPI annual rate not quarterly adjusted (%)

Thursday: 20:30 U.S. June PPI annual rate (%)

Friday: 20:30 U.S. June Retail Sales MoM (%)

Translated with www.DeepL.com/Translator (free version)

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