Entering the European market on Monday (August 1), as the market reassessed the tightening path of the Federal Reserve, the dollar's decline further intensified, while gold continued to rebound. Currently, it has risen above the 1770 mark and is heading for the fourth consecutive trading day.
The intraday high touched around 1,773, surpassing the highest since July 6 at $1,767.79 hit on Friday.
The dollar fell to a near three-week low against other currencies and the yield on the benchmark U.S. 10-year Treasury note hovered near a four-month low, and gold bulls appeared to be gaining momentum.
This is mainly because investors are starting to converge on expectations of a rapid economic slowdown and speculate that the Fed will take less water. SPDR Gold Trust, the world's largest gold exchange-traded fund, said its gold holdings rose 0.06% to 1,005.87 tonnes on Friday from 1,005.29 tonnes on Thursday.
For now, U.S. nonfarm payrolls data will be the focus of the week, with July initial jobless claims due on Thursday and nonfarm payrolls due on Friday. Federal Reserve Chairman Jerome Powell said last week that the labor market remained "extremely tight," referring to near-record job openings and historically low unemployment.
Economic data may be underwhelming as several of the largest U.S. tech companies have halted their hiring processes. Market expectations are that the U.S. labor market is expected to add 250,000 jobs in July, down from the previous estimate of 372,000.
In addition, the unemployment rate held steady at 3.6%. A worse-than-expected non-farm payrolls data this week will add to speculation that the Federal Reserve will lessen rate hikes, giving gold more of a boost.
Daily level: fluctuated upward; gold prices initially formed a bottom signal similar to a V-shaped flip at a relatively low level, Bollinger Bands closed, MACD golden forks, KDJ golden forks, short-term bias to bulls, gold prices initially topped the middle of the Bollinger Bands , it is expected to further rise to the vicinity of the Bollinger line, and the resistance of the Bollinger line is currently around 1829.47; however, in the short-term, you need to pay attention to the resistance near the low of 1786.70 on May 16, and the 1780 mark and the 1800 mark also exist to some extent. resistance.
In view of the fact that the K-line and J-line of KDJ also issued a short-term overbought signal, the short-term need to beware of the risk of shock and callback, and the initial support is near the middle rail of the Bollinger Band at 1749.65. If it falls below this position, it will weaken the short-term bullish signal; 10 The daily moving average is supported near 1730.66.
If it unexpectedly falls below this position, it will increase the short-term bearish signal.