On Monday (July 5) in the Asian market, the spot gold was in the operation of hovering around 1784.1 to 1789.5 and is now quoted at US$1787.8/oz. Looking back at the market situation on Friday, Friday showed a volatile upward trend. During the Asian and European trading hours, the rise started from 1773.9. The US market was driven by the data and pulled up to the position of 1794.7. Then it fell under pressure and finally closed at US$1787.4/ Ounce, based on candle stick on the daily line.

On the fundamental, the US non-agricultural employment data on Friday can be described as mixed. The non-agricultural employment population data recorded a better-than-expected growth, but the unemployment rate did not perform well as expected. Therefore, gold continued to be under pressure below 1795. The market performance on Monday may continue to continue the upward trend, but since today is the United States’ Independence Day to make up for the holiday, gold will close early, so the strength of the rise may not be too strong. In terms of the epidemic, the spread of the Delta variant of the coronavirus has spread to most countries and regions in Asia, Europe, and the Americas. According to a report by WHO Director-General Tedros Tedros, “the speed of sharing vaccines between rich countries and low-income countries is too slow to prevent the spread of Delta. variants” is a long way from effectively controlling the spread of the global epidemic.

Technically, after the data was released on Friday, the US dollar index quickly fell after a short-term rise. The KD indicator formed a golden cross on the daily chart, suggesting that the US dollar will continue to fall. However, on the 4-hour and 1-hour charts, there are signs of an upward rebound, so the US dollar tends to fluctuate in a short period of time. In terms of spot gold, three consecutive positives were received on the daily chart, but the overall pressure is still below the 1795 line. Therefore, we need to focus on the 1795 line. If it breaks, it is expected to reach the 1806 position. If it does not break, it will continue to pull back and fluctuate. On the 1-hour chart, the KD indicator golden cross, the market relies on the position of the middle band of the Bollinger Band, and the short period is relatively strong. Since the market will close early today, the market has the opportunity to continue to be under pressure at 1795, it is recommended that you can try a short order here.

Resistance position: 1792/1795/1808

Support position: 1778/1772/1767

Investment Advice:

#1: Short near 1790/1793, set risk management: 1797, target 1785/1780/1775.

#2: Long near 1775/1773, set risk management: 1770, target 1785/1790/1795.

Analyzed by：Mr. Chris Lau，Independence analyst