Weekly Summary (18/10/2022)

On Monday (October 17), the price of gold rose slightly during the Asian session. Since the British government has actively dealt with the pension crisis and tax cuts since last weekend and is preparing to announce the medium-term fiscal plan in advance, it has helped the pound rebound and suppressed the dollar, which has given gold price safe-haven support. At present, the price of gold is around $1652.5/oz, as the dip buying near 1640 and the slight weakening of the US dollar provide upward momentum to the price of gold.

Due to the unexpectedly good U.S. CPI data last week, as well as the hawkish speech of Fed officials and the market’s expectation of a 5% increase in the Fed’s terminal interest rate, U.S. bond yields continued to rise, recording an eleven-week winning streak, and the U.S. dollar index also fluctuated last Friday. Going higher, the price of gold fell below the 1660 support level, and the lowest touched the 1640 mark. There is a chance that it will fall to around 1620 or even 1600 this week.

Technical analysis:

At present, the 1640 mark provides support for the gold price. KDJ has almost reached the oversold area, and the gold price has shown signs of a rebound. Pay attention to the resistance near the 5-day moving average at 1660.05. If the resistance can be recovered, it will weaken the short-term bearish signal; the 21-day moving average resistance is at 1670.50 Nearby, and the 10-day moving average resistance is around 1681.89.

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