Gold market analysis

Last week, the four major precious metals - gold, silver, palladium and platinum - took turns to exert their strength. Under the global de-dollarization policy, the precious metals market has soared. At the beginning of the week, as Trump accused China of violating the Geneva Agreement over the previous weekend, the market was worried that there would be new measures in the trade war. Market funds were pushed into the gold market for safety. By the opening on Monday, the gold price had been rising steadily. Compared with the closing price of the previous week, the gold price had soared by 100 US dollars and only took a break before the 3,400 mark.

Although there are some violations in the trade agreement between China and the United States, no details have been seen yet. Coupled with the lack of a new round of countermeasures, the market has begun to respond coldly. Recently, the Internet has made fun of TRUMP's TACO, meaning Trump ALWAYS CHICKENS OUT, that is, during the trade war, Trump often goes back on his word and sanctions are all talk and no action. As a result, gold prices have little momentum to break through their highs. When the market also reported that China and the United States would hold talks, gold prices have moderately pulled back from their high of 3,400.

The ADP data in the middle of the week was very disappointing, which gave gold prices the momentum to challenge the 3,400 mark again. Unfortunately, it failed to stabilize. Seeing that gold prices failed to break through the 3,400 mark several times, the market began to shift to other precious metals. Platinum, palladium and silver were all in high demand. Among them, silver rose to a 12-year high, breaking through $36. On Thursday, it rose by nearly 4% in a single day. Palladium and platinum both reached recent highs. The continuous de-dollarization of the market has provided impetus for precious metals.

On Friday night, the non-farm payroll data released by the United States was better than expected, and the labor market did not deteriorate. The Federal Reserve could be more patient in maintaining high interest rates, which put pressure on the gold price to pull back. The gold price rose only slightly throughout the week. Looking ahead to this week, the United States is about to release inflation data. Recently, due to the grace period of the trade war, there seems to be no sharp increase in the price level, but imports have plummeted sharply, which will eventually push up inflation. If inflation deteriorates, the Federal Reserve will be more willing to maintain high interest rates, which is not good for gold prices. However, the global de-dollarization support for the positive trend of gold remains unchanged. Whenever there is a pullback, it is also a good opportunity to enter the market. Gold prices at 3,400 are under short-term pressure, and the market situation is more likely to start consolidating and fluctuating. Let's take a look at the market situation. You might as well refer to each other.