Weekly Summary (2/8/2022)
On Monday (August 1), spot gold refreshed its high position from July 5 to $1775.20 per ounce, materializing a fourth consecutive session of gains and reaching a high position of 1770. As investors increasingly believe that the Federal Reserve's aggressive water collection will plunge the economy into recession.
Although the unemployment rate is expected to remain at 3.6% in July, the Fed's aggressive rate hike is bound to depress job market labor demand, and a rise in unemployment will be difficult to avoid in the longer term. Federal Reserve officials believe that the level of unemployment consistent with price stability will be significantly higher than in the last economic expansion cycle. This means that more jobs will need to be sacrificed to control inflation.
On the hourly chart, gold prices have previously stepped back to confirm support along the $1750 area and are now working to break out of the $1768-1773 range. If it stands firm above this range, the market is expected to further move up to $1785.
Technical analysis.
Spot gold has continued to rise over the last week due to the US dollar and is currently at a 1770 position. The price curve has remained in the upper Bollinger Band channel range with a more pronounced upward range with plenty of momentum, with no obvious pullbacks or consolidation trends. It is still marching in the upward channel and there is hope that prices will move up to 1785.
Important information for the week.
Wednesday: 20:15 U.S. July ADP employment figures (million)
Thursday: 20:30 U.S. trade accounts for June ($ billion)
Friday: 20:30 U.S. July non-farm payrolls change quarterly (million)
