China’s new office press conference: coronavirus mutation may exist, China’s current confirmed 440 cases! Gold suddenly accelerated its decline during the day

International spot gold was trading at $1553.20 an ounce in early Asian trading. The price of gold fluctuated sharply in the previous session on the back of mood swings, surging as high as $1,568.50 an ounce in the Asia-pacific session, before tumbling back from there to as low as $1,546.20 before slipping back into volatile mode. For now, gold has accelerated its decline, hitting an intraday low of $1,551.39 an ounce and maintaining losses.

Gold T+D rose 2.96 yuan, or 0.86%, to 348.04 yuan per gram on Tuesday, with the highest bid of 348.80 yuan per gram and the lowest bid of 345.37 yuan per gram.

Meanwhile, international spot gold traded as low as $1545.96 at $1563.96 and as high as $1568.40 at $1558.03, down $5.83 or 0.37 percent.

Within days, the country’s new office held a news conference on pneumonia prevention and control work, the deputy director of the national health commission li bin said that the new pneumonia epidemic spread mainly through the respiratory tract. The virus has the potential to mutate and there is a risk of further spread. After the outbreak was discovered for more than a week, the pathogen was rapidly identified as the new coronavirus, and technical plans were formulated for case diagnosis and treatment, emergency monitoring, epidemiological investigation and disposal, sampling and detection, etc.

Li bin said that by 24:00 on January 21, China had received a total of 440 confirmed cases of pneumonia from 13 provinces (autonomous regions and municipalities directly under the central government), with 9 deaths and 3 new cases, all in Hubei. A total of 149 new confirmed cases of coronavirus infection with pneumonia have been reported, including 1 confirmed case in Japan, 3 confirmed cases in Thailand and 1 confirmed case in South Korea. So far, 2,197 close contacts have been traced, 765 have been removed from medical observation, and 1,394 are under medical observation.

US President Donald Trump on Tuesday threatened to seriously consider imposing tariffs on cars imported from Europe if a fair deal is not reached. However, he later said he wanted to reach a deal with the eu on car tariffs. In addition, he threatened to impose a 100% tariff on French wine. The Commerce Department later confirmed that it had not issued the auto report, saying it would hamper “ongoing negotiations between Europe and the United States on auto tariffs.” That has again raised trade tensions between the U.S. and the European Union, and markets are in a risk-off mood.

On the other hand, the outbreak of the new coronavirus has attracted worldwide attention just before the Spring Festival. China has confirmed 324 new cases of coronavirus pneumonia in 14 provinces as of 7 am Tuesday, according to CCTV news. The national health commission has been working with relevant departments to prevent and control the outbreak of pneumonia caused by the new coronavirus. Meanwhile, the U.S. centers for disease control and prevention reported its first case of the new coronavirus. On the news, risk aversion spread, with safe-haven currencies such as the yen and Swiss franc rising and the renminbi falling, while spot gold retreated quickly after a surgeon fears it was overbought and taking profits.

Next, we need to continue to pay attention to the situation of pneumonia outbreak in Wuhan, and guard against the rekindled risk aversion in the market, thus triggering sharp gold volatility.

Technically, the daily chart shows that gold continues to come under slight pressure, currently trading just above 1550, before falling back to around $1545, once close to the moving support of the 20-day moving average. According to the technical indicators, the MACD green kinetic energy column is expanding gradually, the RSI index is approaching the level of 50, and the KDJ random index is bouncing from below the level of 50.

On the 4-hour chart, gold fell sharply in the short term after hitting a high of $1,568 yesterday, briefly dropping below the key 100-session average of $1,549 and now winding around the 50-session average. In terms of technical indicators, the MACD red kinetic energy column expanded slightly, the RSI index fell from the level of 50, and the KDJ random index hit the level of 50.

Fundamentals favorable factors:

1.US President Donald Trump said on Tuesday that he would seriously consider imposing tariffs on cars imported from Europe if a fair deal could not be reached. However, he later said he wanted to reach a deal with the eu on car tariffs. In addition, he threatened to impose a 100% tariff on French wine. The Commerce Department later confirmed that it had not issued the auto report, saying it would hamper “ongoing negotiations between Europe and the United States on auto tariffs.

2.”China has confirmed 324 new cases of coronavirus pneumonia in 14 provinces as of 7 am Tuesday, according to CCTV news. The national health commission has been working with relevant departments to prevent and control the outbreak of pneumonia caused by the new coronavirus.

3.The U.S. centers for disease control and prevention (CDC) said Tuesday that a Chinese tourist in Seattle has been confirmed as the first case of the new coronavirus in the United States.

4. At about 010:00 local time on January 21, the Iraqi capital Baghdad green zone was hit by three rockets, located near the U.S. embassy zone and international coalition camps, air raid sirens sounded. There were no immediate casualties.

Fundamental negative factors:

  1. The bank of Japan held monetary policy steady on Tuesday, raising its growth forecast slightly and signaling cautious optimism about the global economy, but said continuing risks meant it was too early to consider scaling back its massive stimulus program.

2.US President Donald Trump and his French counterpart Emmanuel Macron have agreed to continue negotiations on a digital tax until the end of the year, French diplomatic sources said on January 20. Mr. Trump has agreed to suspend tariffs until the OECD digital tax debate is over.

3. The German producer price index (PPI), released by the federal statistics office on Monday (20 January), was 0.1% in December, better than the previous reading and expected 0%.

4. On Friday, U.S. housing starts rose to an annualized total of 1.608 million units in December, the highest since December 2006, and a 16.9 percent monthly rate, the biggest monthly increase since October 2016.

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