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Weekly Summary (02/11/2022)

After the market opened last Monday (October 24), gold once rose to 1670, which was the second attempt to break through the daily resistance level of 1666, but failed. Then the price of gold fell and stabilized above 1642, indicating that the weekly gold price was supported at 1642 and the market expected that the pace of Fed rate hikes would slow down and the dollar would fall, so there was room for gold to rise in the short term. Momentum tried to break above the 1666 resistance level, but unfortunately still failed. The subsequent rebound in the US dollar index led to increased selling pressure, and the price of gold fell back to the 1642 level on Friday.

As can be seen in the figure, the US dollar index fell by about 2.8% in total due to the wind, but the gold price rose slightly. Unless the Fed rate negotiation results really show a slowdown guide, it is difficult for the gold price to see signs of a sharp recovery in the short term.

Technical analysis:

The gold price failed to break through the 1666 resistance last Monday & Wednesday. Although the average line in the daily chart reversed, it failed to break through the black circle 20-day average), and there was no buy signal. The current gold price is still at 1621-1666 In the range, if the price of gold successfully stabilizes above 1666, gold may be able to break through the long-term descending channel and begin to turn. However, if the price of gold falls again and falls below the previous bottom of 1617.3, it will likely resume the downward trend. MACD is still negative, and no buying indicator is given.

Important information this week:

Tuesday: 22:00 JOLTS Vacancies

Wednesday: 22:30 EIA Crude Oil Inventory Change

Thursday: 02:00 Fed rate meeting results

Thursday: 02:30 FOMC press conference

Friday: 20:30 Nonfarm Payrolls

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