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Weekly Summary (23/8/2022)

Spot gold hovered nearly four-week lowest early in Asian trading on Tuesday (23 August) and currently trading near US$1,737. Gold prices extended their losses overnight, hitting a low of US$1,727.69, a new low since 28 July, and closing lower for the sixth consecutive session, as investors became increasingly concerned that interest rate hikes in the US and Europe to curb inflation would weaken the global economy and safe-haven demand for the US dollar Another spike helped the dollar hit a new five-week high, approaching the nearly two-decade high set in July, weighing significantly on gold prices; and the market is expected to see Fed Chairman Jerome Powell delivered a hawkish speech at the Jackson Hole annual meeting this week.

Overall, market attention is focused on Fed Chairman Powell's speech at the Jackson Hole central bank symposium on Friday to gain further insight into how aggressive the Fed may be in terms of future rate hikes. Analysts generally expect Powell to sound hawkish, the expectation bias to further support the dollar and depress gold prices, gold prices short-term bias to further test the July 27 low near 1711.38 support, or even near the 1700 mark, the lower Bollinger support is not far behind. Watch out above for resistance around the 5-day SMA at 1748.22.

This week's price forecast is mainly in steady decline as the main tone, the current price in the 1737 position and can be considered down market-oriented, the target in 1700 position.

Technical analysis.

Last week so far the market is mainly down as the main background, the downward trend is flat and stable, from 1770 area down to 1730 area. The Bollinger band trend is smooth, with no larger-scale retracements in between, and the overall trend is clear. The price is currently rebounding slightly and is in the upper Bollinger band range touching the upper rail line before moving down. The market remains mainly in a downward range with a more pronounced downward momentum.

Important information for the week.

Wednesday: 20:30 US July preliminary monthly durable goods orders (%)

Thursday: 20:30 US Q2 real GDP revised annualised quarterly rate (%)

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