Weekly Summary (19/7/2022)

Gold continues to come under pressure as dollar dynamics uncertain

Spot gold rallied on Monday (July 18) as the dollar index hit a one-week low of 107.18, further off last week near a 20-year high of 109.303. Several Fed officials hinted last week that they were not in favor of accelerating the pace of interest rate hikes this month. The Fed has entered a period of reticence ahead of this month's policy meeting. If the Fed ultimately proves to be duplicitous, it will be interpreted by outsiders as a medical emergency and damage the Fed's credibility.

This month's survey conducted by the Wall Street Journal showed a 49% chance of a recession in the US economy over the next 12 months. Some 46% of economists expect the Fed to raise interest rates excessively and cause unnecessary economic weakness; 12.3% believe the Fed will raise rates inadequately, and 42% say the Fed will raise rates by a moderate margin to balance inflation and growth.

Since the market opening of this week, spot gold remains under pressure downward trend and is expected to continue this week, because the dollar outlook is obscure, spot gold does not have a strong trend momentum, this week will continue the low hovering downward market, downward target look at 1700.

Technical analysis.

This week mainly shows a downward trend, prices continuously pierced the lower Bollinger band line and ran in the lower orbit line range, 1700 points at stabilization, reversing upward into the upper orbit, but the overall upward trend is unclear, mainly still in the oscillation hovering range operation.

Important information for the week.

Thursday: 20:30 U.S. initial jobless claims for the week ending July 16 (million)