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Weekly Summary (16/8/2022)

Spot gold plunged over 1.5% to a one-week low position of $1772.82 on Monday (Aug 15), with resistance at the $1800 mark doing the rounds. Hawkish comments from Fed policymakers targeting anti-inflation and rate hike prospects continued to support the dollar. The Fed officials' wording suggests that the fight against inflation will be more protracted and that they are not shy about tolerating a moderate recession.

Earlier data released showed that US consumer and producer prices cooled in July, with import prices falling for the first time in seven months. Headline inflation in the US economy appears to have passed its peak, fuelling expectations of loosening the Fed's hawkish stance. Gold prices moved away from last week's record high of US$1,807.72 per ounce set on July 5.

The price lost support at $1782 in the short term and the market is expected to go further down to the $1770-1765 range. Daily, gold prices are still in the upside wave iii from $1754. wave iii is a sub-wave of the upside wave (iii) from $1711. Wave (iii) is a sub-wave of the upward ((i)) wave that opened from $1680.

Affected by price inertia, prices will continue to fall this week and will remain under pressure downward trend, currently at 1779 position, the main trading range this week at 1790-1780.

Technical analysis.

Last week to this Monday, the price was mainly in the 1780-1800 range to run, the end of a significant downward movement, the lowest will be to 1772 range, mainly by the impact of fundamentals. The price pierced the lower Bollinger band line and ran at a lower position, currently at 1779, showing an oscillating upward movement.

Key information for the week.

Wednesday: 20:30 US July retail sales monthly rate (%)


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