Big news for the gold market: the world’s biggest buyer stops buying gold! Gold approaching 1610! A total of 790,000 cases have been confirmed globally.

In early Asian trading on Tuesday, spot gold continued its decline and is now nearing the $1,610 mark, while the dollar index.dxy rose sharply, gaining as much as 60 points on the day. Russia’s central bank announced on Monday that it would stop buying gold from April 1. Russian buying has been a major pillar of support for the gold market in recent years, and the news is bearish for gold prices. However, analysts said fears of a new pandemic were still growing, which helped the safe-haven asset. According to the latest data, the total number of confirmed covid-19 cases worldwide has exceeded 790,000.

What is the message from the announcement that the world’s largest buyer of gold has stopped buying?

Russia’s central bank announced on Monday that it would stop buying gold from April 1, but did not explain the reasons behind the move. “Further decisions on gold purchases will depend on developments,” the central bank said.

Analysts say Russia already has large gold reserves and may not need more. Moreover, with gold prices near seven-year highs and international investors hungry for safe-haven assets, Russian traders may want to sell.

Russia’s continued gold buying in recent years has been a key pillar of support for the market, providing support as investors abandon safe havens for riskier, higher-yielding assets.

Russia’s central bank has been building up its gold reserves in each of the past three years. Russia’s central bank currently holds about $120 billion in gold reserves.

Gold accounts for about 20 percent of Russia’s international reserves, a high level both historically and from the perspective of other central Banks. Russia’s central bank bought 158.1 tonnes of gold last year, according to the world gold council. Russia’s central bank bought 8.1 tonnes of gold in January, according to the world gold council.

“Central Banks may not want to increase the share of gold in their reserves, which are falling,” said Tatiana Evdokimova, an analyst at Nordea Bank.

The high volatility has not only challenged the gold market, but the oil price war between Russia and Saudi Arabia has also created problems for the country’s economy. WTI crude fell below $20 a barrel on Monday, a 17-year low.

Gold has become a popular investment in recent weeks as coronavirus has sowed the seeds of panic in financial markets, but some traders have struggled to find bullion. With gold prices near seven-year highs and international investors scrambling for safety, Russian traders may want to start selling some.

Dmitry Dolgin, chief economist at ING bank in Russia, said: “the central bank is now sending a signal to gold sellers to shift their supply externally. Global demand seems to be high.”

Global fears of a coronavirus outbreak, and massive stimulus measures by central Banks, have fuelled demand for gold. Although there are thousands of tons of gold bars in vaults all over the world, it is difficult to find the metal you need anytime, anywhere. Gold is often transported on ordinary commercial flights, which are being cancelled by the thousands.

More than 790,000 cases have been confirmed globally

Analysts said fears of a new pandemic were still growing, which helped the safe-haven asset.

Tai Wong, head of fundamental and precious metals derivatives trading at bmo, said: “gold is finally starting to shake up as a risk asset and become a safe haven asset again. The $1,600 to $1,610 is solid technical support, which also helps.”

According to the latest statistics, there are more than 790,000 confirmed covid-19 cases and 37,881 deaths worldwide. The total number of confirmed COVID 19 cases in the United States exceeded 160,000, still the most in the world. In addition, more than 100,000 COVID – 19 cases have been confirmed in Italy.

According to the world health organization, 203 countries and regions have reported COVID 19 cases.

Italy is currently the world’s deadliest country with 11,591 deaths and more than 100,000 confirmed cases. Another 8,358 health workers in Italy were infected with covid-19, according to sky italia, citing data released by the national institute of advanced health research Wednesday.

“The recessionary impact of the novel coronavirus crisis on the global economy suggests investors may continue to seek refuge in gold,” BNP paribas analysts said in a note. We expect demand to remain strong, at least until economic conditions stabilise and the outlook begins to improve. Governments and central Banks around the world have unleashed unprecedented amounts of stimulus.”

Lower interest rates and looser economic policy tend to favour gold because they reduce the opportunity cost of holding non-yielding assets.

With the rapid spread of the epidemic in the United States, the mayor of Washington announced on March 30, local time, all residents began to implement the “home quarantine order”, except for the purchase of daily necessities, medical care and other necessary activities. Violators will be warned and serious violators will be fined $5,000. At least 29 states and the district of Columbia have issued similar home quarantine orders.

US President Donald trump has said models of the outbreak suggest that the peak of the outbreak is not yet in the next two weeks. The next 30 days are challenging times. Mr Trump said one million americans had been tested for the virus.

Morgan Stanley, a leading investment bank, expects the number of COVID 19 deaths to increase exponentially in the us, making the April 30 target of lifting outbreak controls unlikely to be met. Morgan Stanley expects the number of covid-19 cases in the us to rise to 570,000 in the next 20 days.

An analysis by the University of Washington school of medicine predicts a nationwide outbreak peak in April. Covid-19 may have killed 81,000 people in the United States. The analysis by the University of Washington school of medicine used data from the us government and hospitals. The analysis predicts that the peak will come in the second week of April in the United States. In some states, the peak may come later.

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