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Weekly Summary (27/9/2022)

The trend last week was in line with expectations. Before the interest rate hike (0200 from Monday to Thursday), the trend of gold prices was not obvious. The price fluctuated between 1654 and 1683. The market was obviously waiting for news. After the announcement of the rate hike last Thursday (September 22), the dollar rose sharply due to the news of the rate hike, causing gold prices to fall. But in a monetary policy news conference half an hour later, Fed Chairman Jerome Powell hinted that raising interest rates would bring more pain, reducing the chance of a soft landing, prompting a rally of around $20 in gold prices. But the gold price still failed to break through the 1683 resistance driven by the good news, and then returned to the downward trend again, and fell to the lower support level of 1643 on the next Friday.

In terms of trading volume, it is obvious from the figure that the opening volume has increased since last Wednesday. The trend in the next two days may be due to a large number of profit-making closing positions, resulting in no obvious trend following the beginning of last week.

Technical analysis:

The price of gold is still in the descending channel since March, mainly showing a downward trend in the range, and the current price is at 1631. If the market closes below 1643 on Monday, and falls below 1626.4, the low since the market opened on Monday, in a short period of time, the price of gold will maintain a downward trend. The next support line is at 1574, and the current resistance is at 1643 and 1671. But in the long-term, the current price of gold since April 2020 is a long-term buy point.

Important information this week:

Tuesday 22:00 (CCI) Consumer Confidence Index

Wednesday: 22:15 Federal Reserve Chairman Powell's speech

Wednesday: 22:30 EIA Crude Oil Inventory Change

Thursday: 20:30 US GDP

Friday: 20:30 US PCE price index

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