XAUUSD - Mining in China Vs GoldGold is below the EMA200 and EMA50 in the 4-hour timeframe and is moving in its Neroli channel. If the upward movement continues, we can see the limited supply and sell within that range with the appropriate risk reward. The continuation of the gold neroli movement will provide us with the next opportunity to buy it.
Chinese officials have announced the discovery of a huge deposit of high-quality gold ore, estimated to be worth around $83 billion, and may be the largest known deposit of the precious metal in the world.
Chinese scientists have discovered a "supergiant" deposit of high-quality gold ore near some of the country's existing gold mines. This massive deposit, which could be the largest single reservoir of this precious metal remaining anywhere on Earth, is worth billions of dollars.
Representatives of the Geological Bureau of Hunan Province (GBHP) told Chinese state media on November 20 that the new deposits were discovered in the Wangu gold field in northeastern Hunan province. Workers identified more than 40 gold veins containing about 330 tons of gold down to a depth of 6,600 feet (2,000 meters). However, using 3D computer models, mining experts have predicted that as much as 1,100 tons of gold – roughly eight times the weight of the Statue of Liberty – may be hidden as deep as 9,800 feet (3,000 meters). If true, the total reserves are likely to be worth about 600 billion yuan ($83 billion).
Mark Chandler, referring to the poor performance of gold after the recent drop, said: "The price of gold has not yet recovered even half of its decline and remains below the level of $2,663.40. If the U.S. employment report at the end of next week is stronger than expected (with around 200,000 new jobs forecast), speculation about a Fed rate cut in December is likely to ease. This can help strengthen the dollar and interest rates. However, US policies that threaten to derail the international order have encouraged some foreign central banks to continue hoarding more gold.
Employment data will be the centerpiece of the economic calendar next week and is expected to have a significant impact on the direction of markets. This set of reports includes JOLTS job openings on Tuesday, the ADP employment report on Wednesday, weekly jobless claims on Thursday, and the key nonfarm payrolls (NFP) report on Friday. Each of these reports can provide clues about the state of the labor market and the Federal Reserve's future decisions.
Along with these employment data, ISM purchasing managers' indicators are also in the focus of traders' attention. The index of the production sector is published on Monday and the index of the service sector is published on Wednesday. Additionally, the University of Michigan's preliminary consumer confidence index, an important measure of economic sentiment and consumer purchasing power, will be released on Friday.
Wednesday will be a key opportunity for markets to hear comments from Federal Reserve Chairman Jerome Powell ahead of the Federal Reserve's media silence. Powell is scheduled to participate in a moderated conversation at the New York Times DealBook, an event that is likely to provide clues about the Fed's future policy.
