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Market News Gold trading reminder: The U.S. dollar regained the ground it lost last Friday, and the price of gold went down but the upward trend remained unchanged!

Gold trading reminder: The U.S. dollar regained the ground it lost last Friday, and the price of gold went down but the upward trend remained unchanged!

In the Asian session on September 7, spot gold rose slightly, trading around 1825. The price of gold fell slightly on Monday, mainly because the US dollar recovered the ground it lost last Friday, but the upward trend remained unchanged.

Eden
2021-09-07
7632

On Tuesday (September 7) Asian session, spot gold rose slightly, trading around 1825. On Monday (September 6), the price of gold fell slightly, mainly because the rise in the US dollar index put pressure on the price of gold. However, the epidemic and the slowdown in economic growth limited the decline in the price of gold.

Focus on the Reserve Bank of Australia interest rate decision in the day.


Fundamentals are bullish


[Goldman Sachs downgrades US economic growth expectations]

Goldman Sachs economists lowered their forecasts for US economic growth this year, pointing out that the outlook for US consumers will be more "difficult" than previously expected.

Economist Ronnie Walker wrote in a report to clients on Monday that the overall expansion rate in 2021 is expected to be 5.7%, which is lower than the 6% forecast announced at the end of August.

Walker predicts that economic growth will accelerate in 2022. The bank raised its forecast for 2022 from 4.5% to 4.6%.

Explaining the reasons for lowering the economic forecast for 2021, Walker wrote that with the emergence of delta variants, the weakening of financial support and the shift of consumer demand from goods to services, consumer spending in the United States is expected to decrease. He said that the supply chain disruption has also affected inventory replenishment.

Walker said: "The obstacles to future consumption growth seem to be much larger. The delta strain has already put pressure on growth in the third quarter. In the medium term, the weakening of fiscal stimulus measures and the slowing down of service industry recovery are both unfavorable factors."

Goldman Sachs also raised its unemployment rate forecast for the end of 2021 to 4.2% from the previous 4.1%.

[US media: There is only one state left in the United States without Mu mutant virus cases]

A few days ago, a mutant new coronavirus named "Mu" has attracted the attention of the WHO. As of now, there is only one state in the United States that has no cases of Mu mutant new coronavirus. According to the US "Newsweek" website, in the United States, at least one case of Mu mutant virus has been reported in all states except one state. According to mutant virus tracking data, as of September 4, the state with the highest proportion of Mu mutant virus cases in the United States is Alaska. (Overseas Network)

[Institutional analysis: gold prices stayed near the highs of several months, as the Fed reduced expectations in advance]


Gold fell back on Monday as the U.S. dollar strengthened, but the bet that the Fed's economic support measures to lift the epidemic might slow again reappeared, bringing the price of gold close to a 2.5-month high.

Analyst De Casa said: " After the employment data disappointed the market, investors believed that Powell's pressure to start shrinking debt was reduced, and debt reduction may not start until December. These are all supporting factors for gold prices. "

De Casa said that the price of gold should remain above US$1,800 in the short term.

However, analyst Veyret said in a report that gold was underperforming at the beginning of the new week, with the price approaching the short-term support level of $1,825. "The current consolidation can also be used as an opportunity to take some profit after the bullish rise last Friday."

Fundamentals are bad


[Land lost after the U.S. dollar regained the non-agricultural report]

The U.S. dollar on Monday recovered all losses after last week’s poor US jobs report and expanded its broad gains, as concerns about slowing global economic growth boosted its safe-haven attractiveness amidst peaceful holiday trading.

(Daily chart of the US dollar index)

Although the weak employment report doomed expectations that the Fed might sound a hawkish tone at a meeting later this month, analysts said the data once again reminded people that global economic growth lost momentum after the rebound earlier this year. , This is a major negative for cyclical currencies such as the euro and the Australian dollar.

Although the currencies have remained within the recently familiar trading range, in London trading, due to concerns that the global economy will be in trouble, the sentiment has turned in favor of the US dollar. The US market is closed for the holiday.

The economic surprise index from the United States to China has fallen sharply in recent weeks, and the latest manufacturing survey from the United Kingdom to Japan shows that the increase in Delta cases of the new crown variant virus is reducing optimism.

A trader at a U.S. bank said: “The subject matter in the next few weeks is mainly to see whether the global growth data can rebound sharply. As students return to school, how the Delta variant cases evolve, and from the perspective of momentum, whether we continue to see Large medium and long-term investors are beginning to re-operate their funds."

Generally speaking, the price of gold is still on the rise. If it can break through the important resistance of 1834, there is a chance for further rise in the future.

(Spot gold daily chart)

GMT+8 8:34, spot gold was quoted at US$1825.66 per ounce.

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