Weekly

Last Friday, the U.S. dollar index continued to strengthen, but this did not hinder the gold rally for two reasons. First, the worse the U.S. economic data than the market expected, the better the gold price. Thursday's first jobless claims had been rehearsed.

On Friday, the U.S. released retail sales data for April. The difference in performance continued to record the largest monthly decline in history, with a drop of 16.4%, which was much lower than the 12.0% drop expected by the market and doubled from the 8.4% drop last month.

Second, the Sino-US trade war continues to heat up, increasing the demand for gold as a safe haven investment tool.  On Friday, the U.S. Department of Commerce proposed new regulations requiring foreign companies to use U.S. chip equipment.

Only after obtaining the license issued by the United States can certain chips be put into effect immediately on Friday.   

Although the US side is a foreign company, it actually refers to Chinese technology enterprises such as Huawei.  China responded strongly, pointing out that if the United States further suppressed Huawei, China would fight back strongly, including including Apple and other related US enterprises.

In the "list of unreliable entities", companies such as Qualcomm, Cisco and Apple may be restricted or investigated, and Boeing's aircraft procurement may be suspended.

The Chinese side stressed that the counter-measures were to tell the US side that there was a price to pay to suppress Huawei.  Gold rose to 1752 in the US market, a seven-year high, but unfortunately it was unable to hold on to the 1748 level set on the 24th of last month and finally closed at 1742.

There will be no heavy data to be released in the market next week, and gold price is estimated to move up and down within a reasonable range.  Judging from the trend alone, if the gold price can maintain a range of 1730 to 1740, it can be regarded as a healthy consolidation and has the ability to step up again.

However, 1726 is especially important. If it falls below this key position, it may return to 1715 support position.  New york's current month crude oil futures continued yesterday's uptrend, rising 2%.

With oil-producing countries reaching further agreements to cut production, and countries easing blockade measures one after another, and market data showing that China's daily crude oil consumption rebounded last month as refineries increased production, the market's confidence in improved demand has been strengthened.

The slogan of restarting the economy has led to a steady rise in crude oil prices, which also reflects investors' full hope for the prospect of crude oil demand.

Crude oil investors should pay attention to short-term risks, including whether the second wave of the new coronavirus broke out, oil stocks and the negative oil price haze that appeared on April 21.

The June contract of WTI crude oil will expire on Wednesday, that is, may 20. investors must be psychologically prepared and well managed.

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