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Market News Gold market analysis: gold may try to test the resistance of 1830--1836 this week
Gold market analysis: gold may try to test the resistance of 1830--1836 this week
This week, gold may try to test the resistance of 1830-1836. As the starting and falling point of the second wave, it is difficult to break through, but if it breaks through, it will test the formation of the high point connection since September 2020. The trend line currently roughly corresponds to around 1890.
2021-08-30
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Gold opened at $1,780.16 per ounce last week and closed at $1817.57 per ounce, with the highest hitting $1819.19 per ounce and the lowest hitting $1776.37 per ounce. Over the weekend, due to Powell’s dovish remarks, the U.S. dollar was hit hard. The price of gold soared to its highest level since early August, close to $1,820, with a weekly rise of more than 2%.
On Friday, local time, the Jackson Hole annual meeting was held online. Powell made a heavy statement, saying that although he said that he would taper (reduced asset purchases) during the year, he did not indicate the time and extent of debt reduction, and emphasized the reduction of debt purchases and increase. The correlation is not high, and the overall signal released is dovish. Interest rate hikes may not come soon. Powell pointed out at the meeting that it is appropriate to start debt reduction this year, but debt reduction will not directly signal the timing of a rate hike. It emphasized that the conditions that need to be met to raise interest rates are different from those for debt reduction, and are substantially more stringent. Until the goal of full employment and price stability continues to be achieved, the benchmark interest rate will remain at the current level. In terms of inflation, Powell said that current inflation is a problem, but it is temporary. If persistently high inflation becomes a serious problem, the Fed will definitely respond. The current price stabilization target has reached "further substantive progress" and the job market has continued to improve, but there is still room for repair. The delta strain spreads further and there is still a long way to go before maximizing employment. Powell also emphasized that even after the end of the bond purchase plan, the high reserves of long-term bonds will maintain a loose financial environment. Powell’s speech has greatly eased the worry that the Fed’s interest rate hike may soon enter the countdown for a long time, and the gold bulls are trying to promote the rise of gold for this reason.
Last week, gold broke through the trend line formed by the high point connection since 1796. After the breakthrough, it stepped back on the trend line twice, but did not break below 1777. On Friday, it refreshed its high point, with the highest impact reaching 1819. This week, gold may try to test the resistance of 1830-1836. As the starting and falling point of the second wave, it is difficult to break through, but if it breaks through, it will test the formation of the high point connection since September 2020. The trend line currently roughly corresponds to around 1890.
Bank of China Guangdong Branch Wang Gang
Original title: "Pigeon" is put on the annual seminar, and the golden hair grows high
Source: Bank of China official website
On Friday, local time, the Jackson Hole annual meeting was held online. Powell made a heavy statement, saying that although he said that he would taper (reduced asset purchases) during the year, he did not indicate the time and extent of debt reduction, and emphasized the reduction of debt purchases and increase. The correlation is not high, and the overall signal released is dovish. Interest rate hikes may not come soon. Powell pointed out at the meeting that it is appropriate to start debt reduction this year, but debt reduction will not directly signal the timing of a rate hike. It emphasized that the conditions that need to be met to raise interest rates are different from those for debt reduction, and are substantially more stringent. Until the goal of full employment and price stability continues to be achieved, the benchmark interest rate will remain at the current level. In terms of inflation, Powell said that current inflation is a problem, but it is temporary. If persistently high inflation becomes a serious problem, the Fed will definitely respond. The current price stabilization target has reached "further substantive progress" and the job market has continued to improve, but there is still room for repair. The delta strain spreads further and there is still a long way to go before maximizing employment. Powell also emphasized that even after the end of the bond purchase plan, the high reserves of long-term bonds will maintain a loose financial environment. Powell’s speech has greatly eased the worry that the Fed’s interest rate hike may soon enter the countdown for a long time, and the gold bulls are trying to promote the rise of gold for this reason.
Last week, gold broke through the trend line formed by the high point connection since 1796. After the breakthrough, it stepped back on the trend line twice, but did not break below 1777. On Friday, it refreshed its high point, with the highest impact reaching 1819. This week, gold may try to test the resistance of 1830-1836. As the starting and falling point of the second wave, it is difficult to break through, but if it breaks through, it will test the formation of the high point connection since September 2020. The trend line currently roughly corresponds to around 1890.
Bank of China Guangdong Branch Wang Gang
Original title: "Pigeon" is put on the annual seminar, and the golden hair grows high
Source: Bank of China official website
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