On Friday (January 11th), international spot gold prices rose as the dollar fell. As the outside world expects, if the US economy slows down this year, the Fed may suspend interest rate hikes, which will put the dollar under pressure. In addition, investors are still waiting for news about the progress of trade negotiations. Spot gold prices have risen by 0.7% so far this week and are expected to record the fourth consecutive weekly gain.
Quotes show that spot gold rose 0.47% to 1,292.74 US dollars / ounce, the previous day fell more than 0.5%; COMEX goldMain forceThe contract rose 0.44% to $1293.2 per ounce; the US dollar index fell 0.18% to 95.376.
Federal Reserve Chairman Powell said on Thursday that the Fed has the ability tocurrencyThe policy remains patient. However, he ignored the pessimistic predictions of policy makers, suggesting that this year will increase again.interest ratetwice.
Stephen Innes, head of trade for OANDA Asia Pacific, said: "The weaker dollar and the Fed’s stance are the two most favorable factors for the price of gold. The market is worried that the US economy will slow down, probably near the end of 2019 and early 2020, so the market may digest interest rate cuts. Sex."
Innes pointed out that the gold market has some reservations, and the market is worried that the stock market may rise sharply due to the ceasefire of trade friction.
Sugandha Sachdeva, vice president of metals, energy and foreign exchange research at Religare Broking, said: "The contradiction between the US-China trade dispute still attracts people's attention, and it remains to be determined that once the trade issue is resolved, the dollar is expected to remain depressed and lose its safe-haven appeal. And gold will benefit."
Concerns about the weakening of global economic growth also contribute to the upward trend of gold prices. The data released by Switzerland and France on Thursday reinforces this concern.
US President Trump threatened on Thursday to use emergency power to bypass Congress and pay for the US-Mexico border wall.
British Labor Party leader Corbin called on legislators on Thursday to help his opposition party "break the deadlock" and support him in launching a no-confidence motion within the government, which in turn sparked elections.
The world's largest goldETF-- SPDR Gold Trust's holdings fell 0.18% to 797.71 tons on Thursday.
The world's second largest gold producerNewmont MiningA spokesman for the company (Newmont Mining Corp) said on Thursday that the company decided to lay off 120 people at the Carlin mine in Nevada. Previously, the company had decided to shorten the life of one mine, and another mine decided to suspend some of its mining activities due to wall collapse.
Spot gold ensures a bullish posture and needs to hold $1,277
Compared with the 1 year and a half low of 1,160 US dollars recorded in August 2018, the spot gold price has rebounded by more than 130 US dollars, and the recent acceleration of the upward trend indicates that the risk-reward ratio of the gold market is becoming larger and larger.
In other words, the bullish posture of the gold market has been established. In the short term, as long as the low of $1,277 on January 4 is fixed, the current trend is difficult to reverse.
On the daily line, the price of gold is in the steeper upward channel, and the upper direction looks at $1310. The support below $1,277 is also close to the 20-day moving average.
When it was intended to hit the $1,300 mark last week, the Relative Strength Index (RSI) once stood at 70. However, the current indicators have fallen, investors should beware of possible top divergence.
(Article source: Huitong.com)