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Weekly Summary (31/8/2022)

Spot gold broke lower on Monday (Aug 29), hitting a new low since July 27 to $1,721/oz as Fed Chairman Jerome Powell hinted that interest rates would remain higher for longer to curb soaring inflation. But as the dollar index retreated and turned lower, gold prices rebounded to recover more than half of the day's losses. Whether the coexistence of a tight job market and high inflation is purely due to the new crown epidemic or because the labour force and economy have fundamentally changed is a fraught topic.

The market turned towards a rally in the evening, but the upward momentum was clearly lacking. The price turned sideways after rising to 1745, indicating a lack of support in the market but the rally contributed to some profit-taking away from sell orders, potentially pushing prices further in the opposite direction.

The main consideration for this week is that the market is in an oscillating range, but a large one. The direction of prices is not yet clear and will need to come out of the oscillation phase before further judgment can be made. According to the current market, this week's prices are mainly concentrated in the 1720-60 range, you can buy low and sell high.

Technical analysis.

Last week, the price first up and then down, mainly showing a down market, the lowest drop in the 1720 range. The downward trend is more fluid, the momentum is stronger. Monday evening prices rebounded, rising to 1745 after turning to finish smooth situation, the current price in 1737 slightly showing a downtrend.

Important information for the week.

Wednesday: 20:15 U.S. June ADP employment (million) (0831-0907)

Friday: 20:30 U.S. August non-farm payrolls change QoQ (million)

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