Weekly

Since hitting a historical high of $3,500, gold has been fluctuating and giving back gains. Last week, it finally fell below $3,300. However, the decline was not one-sided but rather a zigzagging descent, with three steps down followed by two steps up. Despite this, there was still considerable buying interest in the market, which supported the rebound of gold prices. 

At the beginning of the week, the gold price still attempted to rebound. It managed to hold at 3,300 and once rose to 3,352, but failed to advance further. The rebound high on Monday was also the highest point of the entire week. It is believed that if the next wave is to resume its upward trend, it must break through this level and stabilize to confirm the return to an upward trajectory. 

With no further news of a tariff war between China and the US, the safe-haven function of gold has been slightly weakened, thus it tends to give back gains. Even though the ADP employment report in the US was lower than expected in the middle of the week, gold did not rebound and lost the 3300 mark. It dropped to 3200 on Thursday before starting to rebound. Before the release of the non-farm payroll, gold had already risen above 3260, indicating that there is still considerable buying power for low-price purchases. 

The U.S. released non-farm payroll data that exceeded expectations. Gold prices once again declined. The labor market was not too weak, reducing the risk of recession and easing the pressure on the Federal Reserve to accelerate interest rate cuts. This pushed gold prices down. However, it was no longer capable of challenging the 3200 mark. On Friday night, gold prices were seen fluctuating within a narrow range without any breakthrough. 

After the gold price retreated from 3500, it has started to attract bargain hunters at lower levels, and there is a greater chance of consolidation. There are not many economic data this week. The Fed will hold an interest rate meeting in the middle of the week, and it is expected that the interest rate will remain unchanged. Recent economic data have been slightly weak, but inflation has also eased. It is believed that the Fed still has considerable room to cut interest rates before the end of the year, which will provide some support for the gold price in the medium term. The post-meeting statement and press conference of the Fed after the interest rate meeting on Wednesday are expected to offer more clues about interest rates. For market outlook, it might be helpful to refer to each other's views.