Spot gold was trading slightly lower at around $1,745 an ounce on Thursday, while the dollar index rebounded modestly to around 99.35. Fed chairman colin Powell, fed vice chairman Ben clarida and New York fed President William Williams are all scheduled to speak on the day, a rare day when the fed’s big three are expected to stir market volatility. In addition, late Thursday Beijing time, investors will welcome the latest closely watched U.S. jobless claims data, which is expected to guide the dollar and gold. In terms of the global epidemic, the total number of confirmed covid-19 cases worldwide has exceeded 5.08 million, and the total number of confirmed cases in the United States has exceeded 1.59 million.
After a short – term fall in gold prices, the outlook remains bullish
Spot gold fell modestly in Asian trading on Thursday to trade around $1,745 an ounce. Gold prices closed higher for a second straight session on expectations of more monetary stimulus from the federal reserve.
Spot gold rose as high as $1,753.70 an ounce in midweek trading, and fell as low as $1,741.80 to close at $1,746.97, up $2.97, or 0.17 percent.
Minutes of the federal open market committee’s April monetary policy meeting, released on Wednesday, cited “considerable uncertainty and considerable risks” from the pandemic.
In its April decision, the fed left its target range for the federal funds rate unchanged at 0-0.25% and its interest rate on excess reserves unchanged at 0.1%.
“Participants commented that, in addition to the significant short-term impact on economic activity, the economic impact of the pandemic created considerable uncertainty and posed considerable risks to economic activity in the medium term,” the minutes said. Spot gold rose nearly $6 an ounce to a high of $1,753.70 after the fed minutes were released.
According to Economies.com, as long as gold remains above its key level of $1,726.00 an ounce, there is still room for a rally in the afternoon.
According to Economies.com, the EMA 50 indicator continues to support gold prices on a four-hour chart. Now waiting for gold to test its next major target of $1805.00 an ounce. The bullish outlook for gold will continue if prices stay above $1,726.00 an ounce.
Economies.com expects $1,720.00 and $1,775.00 an ounce to provide short-term support and resistance, respectively.
Some gold bulls say massive fiscal and monetary stimulus by governments around the world will support gold buying in the long run.
To limit the spread of novel coronavirus, massive economic stimulus measures were taken around the world to limit the economic losses caused by lockdowns and suspensions. These measures supported gold, which is widely seen as a hedge against inflation and currency depreciation.
“The fundamentals of gold have never been better,” says Jeffrey Sica, founder of Circle Squared Alternative Investments. Unless we’re more optimistic about vaccines, we’re going to start to see a spike to new highs. People are still worried about outbreaks around the world. Any news that companies are struggling to reintegrate into the economy will ultimately push gold higher.”
The fed’s “big three” rarely make their debut on the same day
At 22:00 GMT on Thursday, FOMC permanent voting committee chairman William Williams will speak on how the New York fed is providing credit support to households, businesses and the broader U.S. economy during the outbreak. As the “number three” at the fed, Mr Williams’s comments will have a big impact on markets.
At 01:00 Beijing time on Friday, federal reserve vice chairman ali clarida will take part in a video conference on the U.S. economy.
At 02:30 Beijing time on Friday, fed chairman colin Powell will give the opening remarks at the fed listening event, and fed governor brainard will speak.
In congressional testimony Tuesday, fed chairman colin Powell reiterated the central bank’s commitment to using tools to support the U.S. economy during the coronavirus pandemic.
“At this challenging time, we are committed to using all of our tools to support the economy, even as we recognize that these actions are part of a broader public sector response,” fed chairman colin Powell said in testimony before the senate banking committee.
Powell also reiterated that the fed and congress may need to do more before the novel coronavirus crisis is over. “The fed may need to do more, and so may congress,” he said in response to one of the questions.
Federal reserve minutes released on Wednesday said FOMC members agreed that covid-19 posed ‘significant near-term pressures on economic activity, employment and inflation.’
Some market participants have been looking for more “forward guidance” from the fed on what needs to be done to change monetary policy.
FOMC members are expected to maintain their current target range for interest rates until they are confident that the economy has withstood recent events and is on track to meet the fed’s objectives, according to the minutes.
The dollar index held its losses after the minutes were released. The dollar index ended Wednesday down 0.37% at 99.18, after hitting an intraday low of 99.00.
On the closely watched issue of negative interest rates, the fed said in its minutes that respondents to the open market survey thought the possibility of negative rates on the FOMC was close to zero. That is consistent with recent comments by fed officials.
Analysts said the minutes from the fed’s April meeting appeared to indicate a sense of “blind flight” among fed officials, given the extreme uncertainty surrounding the outbreak and its impact on the economy. Fed officials are also worried about a second wave of infections, permanent business closures and inadequate government assistance.
Us jobless claims data hit
Investors are bracing for U.S. jobless claims data at 20:30 GMT on Thursday. Initial U.S. jobless claims are expected to be 2.4 million in the week ended May 16, according to a respected media survey.
New claims for state unemployment benefits hit 2.981 million in the week ended May 9, the sixth straight week of declines, labor department data showed on Thursday.
Analysts said gold could get a boost if the latest U.S. data on Thursday underperforms expectations, which could spur safe-haven buying.
The number of americans filing new claims for state unemployment benefits has remained in the millions for the eighth week in a row as the us economy continues to be affected by the covid-19 pandemic.
“Initial jobless claims will be the most timely hard data to gauge the extent of the recession and capture the start of the recovery,” Goldman sachs analysts said in a recent note to clients.
Although initial claims have fallen for the sixth week in a row, there have been 36.5 million jobless claims since the outbreak shut down businesses in mid-march.
With the covid-19 outbreak shutting down industries, the number of U.S. job losses is likely to rise further, and analysts expect the downward trend in U.S. employment Numbers to continue into the third quarter.
Globally, the number of novel coronavirus infections exceeded 5.08 million
According to the latest statistics, the total number of confirmed covid-19 cases worldwide has exceeded 5.08 million. There are now more than 200,000 confirmed cases in six countries, including Russia, Brazil, Spain, the UK and Italy. In addition, France, Germany, Turkey, Iran, India and Peru have all reported more than 100,000 confirmed cases. The cumulative number of confirmed cases in the United States has exceeded 1.59 million. Russia has more than 300,000 confirmed cases of covid-19, ranking second in the world.
Worldometers world real-time statistics show that as of 9:25 PM Beijing time on May 21, the global total number of confirmed covid-19 cases exceeded 5.08 million, reaching 5084,934, and the total number of deaths exceeded 329,000, reaching 329,719. The United States has the highest number of confirmed covid-19 cases in the world, with more than 1.59 million cases, or 15,91,991 cases, and more than 94,000 deaths, or 94,994 cases.
US President Donald trump said at a White House press conference on May 20 that he would stop taking hydroxychloroquine in a day or two. On Monday, trump said he had taken the drug for the past 10 days as a precaution against novel coronavirus. However, there is little evidence that hydroxychloroquine protects against novel coronavirus.
Michael Ryan, head of who’s health emergency programme, said at the who’s regular briefing on covid-19 on May 20 local time that no hydroxychloroquine or chloroquine has been found to be effective in treating or preventing covid-19.
On May 19, local time, trump announced a $19 billion coronavirus food aid program to support farmers and ranchers in the United States and “maintain the health of the food supply” during the coronavirus crisis.
Major epidemic in overseas countries, Worldometers world real-time statistics, as of 9 PM Beijing time on May 21, 25 points, Russia COVID – 19 confirmed 308705 cases, Brazil has confirmed 293357 cases, accumulative total of 279524 cases of the patients in Spain, the UK has confirmed 248293 cases, Italy has confirmed 227364 cases, confirmed 181575 cases of France, and Germany has confirmed 178531 cases, Turkey has confirmed 152587 cases, Iran has confirmed 126949 cases, A total of 112,028 cases have been confirmed in India, 104,020 in Peru and 80,142 in Canada.