On July 15 and September 3, the price of gold failed to rise above the resistance twice. Once the price of gold broke the resistance, the medium and long-term bullish signal was increased. In addition, the US passed an infrastructure bill with a total scale of more than 1 trillion over the weekend, which means that the market will inject more liquidity, which is expected to provide further upward momentum for gold prices. Gold prices closed up nearly 1.5% last Friday (November 5), and the US dollar index fell back to a low of 94.634, a record high since September 28, 2020 set in the intraday market last Friday. Although the US employment growth in October exceeded expectations, providing more evidence for economic activity to resume momentum at the beginning of the fourth quarter, the Fed is still judging when to achieve its full employment goal.

The chairman of the Kansas City Federal Reserve Bank of the United States, George, said on Friday that there is "no doubt" that the US job market is currently tight. She added that she will carefully observe how salary pressures and inflation expectations evolve, and she will try to measure how close the economy is to the Fed’s goal of achieving full employment.

The US Congress passed a $1 trillion infrastructure bill to repair the country’s airports, roads and bridges. During the COVID-19 pandemic, the ultra-loose fiscal policies introduced by various countries pushed up inflation expectations and raised the charm of gold prices to fight inflation.

This week (the week of November 1st-November 7th) the market will welcome a number of heavy data and economic events. The Sixth Plenary Session of the 19th Central Committee of the Communist Party of China will be held. Both China and the United States will announce October CPI and PPI data. . Among them, the US inflation data is more likely to trigger market changes because the Fed has always emphasized that "inflation is only a temporary situation". In addition, China's October M2 data, social financing scale, US September JOLTs job vacancies, Japan, Germany and France September trade accounts, UK September and third quarter GDP data and other heavy economic data will also be announced this week. At the same time, EIA and OPEC will also release their monthly reports.

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