Weekly

The price of gold once fell below the 2300 mark last week, but it climbed repeatedly after the period. The market is digesting the space for the US to cut interest rates in September, which supported the price of gold to stabilize, but the upward trend was not enough, and it failed to get rid of the recent trend of ups and downs. At the beginning of the week, the market released good data, and the US dollar strengthened. In response to the fact that the Federal Reserve did not cut interest rates, and many countries cut interest rates one after another, the weighted index of the US dollar rose to a two-month high, thus suppressing the trend of gold prices, and only after falling below the psychological barrier of 2300 in the middle of the week could it rebound.

Still holding the support position of 2280 below, the selling pressure did not dare to be too presumptuous, waiting for PCE inflation data. As other recent inflation data also showed that the price index did not deteriorate, investors digested it in advance, helping the gold price rebound above 2330. On Friday night, PCE reported 2.6%, the lowest increase since March 2021, which increased the bargaining chip of the Federal Reserve to cut interest rates, and the gold price also rushed to the weekly high of 2339.77.

Unfortunately, the upward trend is unsustainable, and it is still trapped in the shock range of the chart, and continues to develop in the market. Looking forward to this week, the United States will release labor market data, and the minutes of the June meeting on interest rates will be released in the middle of the week. If it is disclosed that Fed officials are more worried about inflation and postpone the interest rate reduction cycle, it may be detrimental to the price of gold. The market situation is a bit different, so let's refer to each other.