In the last week of gold 1980 I publicly gave a prediction that gold would rise to 1950-1970 in two weeks and they have done it. Next, we continue to predict that gold will fall below 1900 again this week, and let's witness it
On Friday (September 1), spot gold closed at $1,939.80 per ounce, ending the week up $24.97 or 1.30%. Gold hit its highest level in a month above $1,950 this week, rising more than 1 per cent for the second week in a row. Gold benefited from a pullback in US Treasury yields after disappointing US employment data. In the absence of top data releases, technical positioning and moves in global bond yields are likely to drive gold next week.
Next week's focus: U.S. markets will be closed Monday for the Labor Day holiday. On Wednesday, the ISM will release its services PMI report. The headline PMI is expected to fall to 52.3 in August from 52.7 in July. Unless it falls below 50 and shows an unexpected contraction in services activity, it is unlikely to affect the Fed's bets. However, investors may react to the inflation component, the price paid index. A significant increase in this indicator would highlight an acceleration in input inflation in the sector, which could boost the dollar. In the second half of the week, market participants will be closely watching China's trade balance data. Since China is the world's largest consumer of gold, a further deterioration in Chinese exports could weigh on gold prices. In addition, Chinese consumer price index (CPI) data, due to be released next Saturday, could trigger a reaction in gold when the market opens on September 11. On an annual basis, the CPI fell 0.3 per cent in July. If this data points to continued deflation in August as well, investors may take it as a sign of weakening consumer activity and steer away from gold on the prospect of a worsening demand outlook.
The Reserve Bank of Australia and the Bank of Canada will announce interest rate decisions next week. While these events are unlikely to have an immediate or direct impact on gold, changes in global bond yields could affect prices. If both central banks keep policy rates steady and express concerns about the economic outlook, a general pullback in global yields could help gold stay on a solid footing. At the current level, if the 10-year US Treasury yield falls below 4% and starts to use it as resistance, gold could extend its uptrend.
Technical analysis of gold: From a technical point of view, after the non-farm surge on Friday, there is a small cross star on the daily chart, which may indicate signs of a correction. It is important to note that after this week's rise, the price and form of gold have come to the daily Bollinger band suppression point, which may mean that there may be room for a correction in the near future. Gold evening non-agricultural data slightly weak, and did not produce a significant breakthrough, in the situation of unemployment favorable gold, the highest touched near 53, but the continuity is not strong, an hour failed to stabilize and closed the line is negative, then this rise will be regarded as a virtual break, followed by a pullback of power, The previous high above the forest rail pressure 55 line near the line will also be likely to be the key pressure port in the short term, the bulls with non-agricultural data and other data released failed to break through, then it is likely to form a reverse transition in the later period, and the support below is also the 55 moving average 1930, as well as the long-short conversion position pressure near 1925. Next week in the short term will be likely to maintain in this range to produce shocks, then between the early draw, we are determined that the short still have the power, can not break through at the same time, it is likely to only form a puncture of the false breakthrough, then it is likely to form a reversal in the later period, and gold non-agricultural breakthrough failed, we continue to short wait;
Gold 1 hour 4 hours have begun to close the high negative line, since the market has reversed, high fall, after the data stable or not rise, indicating that the gold rise has come to an end, gold now rebound has encountered obstacles around the pressure position of the forest rail, there is the possibility of band adjustment! The high probability is the beginning of the short fall again, then the short term back to see 48-50 near the direct short, loss 1956, the first stage to support the 55 moving average near 1930, the golden hour line appeared bearish engulfed, the Yin line entity directly covered the rebound of the Yang line, but also the breakdown of the 1937 line, the k line rebound has always been weak, always below the 50 average. Once again, the full fire suppression, k line short-term peak, especially the four-hour line directly low jump open, closed two cross stars continuously, this is the top signal, but also not strong enough, next week to continue high altitude, in general, next Monday gold short-term operation ideas on Jin Hao suggested a rebound to short, back to do more as a supplementary, short-term focus on the above 1948-1953 line of resistance, Below the short-term focus on 1923-1925 line support, friends must keep up with the rhythm. To control the position and stop loss problem, strictly set the stop loss, do not resist single operation. The recent market turbulence is large, opportunities and risks coexist, and risks are controlled.