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Weekly Summary (5/10/2022)


Last Monday (September 26), the price of gold continued to decline due to market panic, as the UK launched a substantial tax cut plan, which led to a sharp drop in the price of the British pound and a sharp rise in the US dollar index. The price of gold fell sharply by $20.85 on Monday, but the trading volume on Monday and Tuesday shows that the market does not believe that the policy can be launched smoothly, because inflation in the United Kingdom will increase significantly due to the depreciation of the pound, so the Chicago Mercantile Exchange in the past two days showed Gold trading volume fell continuously, without the support of new selling orders, the gold price stabilized around 1620. On Wednesday, when the Bank of England announced an emergency bailout, the dollar index turned lower and buying increased, the price of gold rebounded at $31.15 after bottoming out again, and the market turned calm for the next two days with no obvious trend.

It can be seen in the figure that except for the day when the Bank of England announced the bailout, the gold trading volume continued to decline.

Technical analysis:

In the medium and long term, the price of gold is still in the descending channel since March. The short-term average line in the daily chart has the opportunity to form a golden cross buy signal. Now the gold price has broken through the 1642-1676 range. If the gold price successfully stabilizes above 1676, the short-term trend range will be 1676-1724.84.

Important information this week:

Wednesday: 20:15 ADP Nonfarm Payrolls Change

Wednesday: 22:30 EIA Crude Oil Inventory Change

Thursday: 20:30 Initial Jobless Claims

Friday : 20:30 Non-farm payrolls

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