Spot gold hovered around $1,710 an ounce in early Asian trading on Thursday, after comments from federal reserve chairman colin Powell sparked a sharp rally on Wednesday. Investors are bracing for an interest rate decision from the European central bank on Thursday night, Beijing time, which is expected to cause volatility in the euro. Also in the spotlight will be U.S. jobless claims data, which is expected to move the dollar and gold. In terms of the global epidemic, the cumulative number of confirmed COVID 19 cases worldwide has exceeded 3.21 million, among which the cumulative number of confirmed COVID 19 cases in the United States has exceeded 1.06 million. The world health organization (who) will convene a meeting of its emergency committee on Thursday to discuss the global outbreak situation and update its response recommendations.
At 19:45 Beijing time on Thursday, the European central bank will announce its decision on interest rates. European central bank President Christine lagarde will hold a press conference at 20:30 Beijing time on Thursday.
Most economists expect the ECB to keep interest rates on hold at the meeting, although it is likely to expand its emergency buying program.
Danske does not expect the ECB’s meeting this week to lead to the new policy, as it has already eased policy substantially over the past six weeks. However, a new policy response from the ECB cannot be ruled out in the near future. Danske expects the ECB to reiterate its readiness to upgrade and extend its bond-buying program and carry out other needed actions.
Danske added that if the ECB stays on the sidelines and waits for the actual effects of the policies it has implemented, it is unlikely to change the current currency/dollar trend.
Uob said it expects the ECB to keep interest rates at current levels for some time because it has taken a series of meaningful actions so far. But the ECB is likely to say it will expand the scope of its asset purchases if needed, including equities, wholesale loans, and bank bonds.
Goldman Sachs believes the European central bank will step up its emergency stimulus measures this week to counter the economic impact of a novel coronavirus pandemic, given the lack of strong fiscal policy action. Barclays also said the European central bank may announce an expansion of its bond-buying program.
Analysts said investors would be watching for comments from European central bank President Christine Lagarde, given the recent marked deterioration in eurozone economic data. If its tone is dovish, the euro could take a hit.
Ms. Lagarde said recently that under the most severe scenario, eurozone economic growth could contract by 15 percent this year, facing its worst recession in nearly a century.
Td thinks the ECB may have done enough for now and doesn’t expect to announce any more substantive policy at its regular meeting this week, but markets will need more guidance on what to expect in the future and what the ECB’s policy toolkit still has.
Td securities expect the bearish macro outlook and negative risk balance to reinforce the bearish bias toward the euro.
U.S. jobless claims data
At 20:30 Beijing time on Thursday, investors will be greeted by U.S. jobless claims data. Initial U.S. claims for jobless benefits are expected to be 3.5 million in the week ended April 25, according to a respected media survey.
New claims for state unemployment benefits rose to 4.427 million in the week ended April 18 from 5.237 million in the previous week, labor department data showed on Thursday.
Notably, the cumulative number of people collecting unemployment benefits over the past five weeks reached 26.5 million, the worst drop in the labor market since the great depression.
CNBC, a leading us business website, says the us economy has wiped out all the jobs created since the great recession.
Analysts said gold could get a boost if the latest U.S. preliminary data on Thursday came in worse than expected, which could spark safe-haven buying.
Initial claims are expected to remain in the millions for weeks as the effects of a novel coronavirus filter through the economy.
“Claims will be the most timely hard data to assess the extent of the recession and capture the start of the recovery,” Goldman sachs analysts said in a recent note to clients.
Job losses in the United States are likely to rise further as the new outbreak shuts down businesses, and analysts expect the downward trend to continue into the third quarter.
Powell’s speech sparked a sharp rally in gold prices
Spot gold was little changed in early Asian trading Thursday, trading near $1,710 an ounce. Spot gold fell as low as $1,700 an ounce earlier on Wednesday as sentiment improved as restrictions were gradually eased in parts of the us, Europe and Australia. But comments from fed chairman colin Powell sent gold prices soaring.
Spot gold fell as low as $1,696.80 an ounce in midweek trading to $1,712.26, up $5.28, or 0.31 percent.
The federal reserve kept interest rates near zero on Wednesday and reiterated its commitment to do whatever it can to boost the economy, as the ongoing coronavirus pandemic that has ravaged the world poses a “significant drag” not only on the short-term outlook but also a “considerable risk” to the medium-term outlook.
Mr. Powell told a news conference that “we are doing everything we can” to help American families and businesses weather the public health crisis. He added that the outbreak could threaten economic growth next year. “We will continue to use our tools to ensure that the recovery is as strong as possible,” he said.
gold rose strongly by more than $17 to $1,717.10 an ounce during Powell’s speech. Safe-haven gold has tended to benefit from a widespread stimulus because it is often seen as a hedge against inflation and currency depreciation.
According to an article on Economies.com, a leading financial website, the four-hour chart shows that random indicators are currently having a negative impact on gold prices, but overall, as long as gold stays above $1,678.45 an ounce, this will keep the bullish trend scenario alive for some time to come.
Economies.com said it was now waiting for gold to gain enough positive momentum to push it above the $1,734.00 an ounce level to confirm its bullish target. The first bullish target is at $1,747.43 an ounce. If that target is breached, gold’s next target is $1,780.00 an ounce.
Economies.com expects short-term support and resistance from $1,690.00 and $1,740.00 an ounce, respectively.
The world health organization will hold an important meeting with more than 3.21 million people infected globally and more than 1.06 million confirmed in the United States
According to the latest statistics, the global cumulative number of confirmed COVID 19 cases has exceeded 3.21 million. So far, there have been more than 100,000 confirmed cases in seven countries in the world, including 1.06 million confirmed cases in the United States and more than 60,000 COVID 19 deaths in the United States.
Worldometers world real-time statistics show that as of 9:17 PM Beijing time on April 30, the global COVID 19 cumulative confirmed cases of more than 3.21 million, to 3,219,242 cases, cumulative deaths of more than 228,000 cases, to 228,194 cases.
The cumulative number of confirmed COVID 19 cases in the United States is the highest in the world, with more than 1,060,000 cases and 1064,194 cases. The cumulative number of deaths is more than 60,000 cases and 61,656 cases, which already exceeds the number of U.S. military deaths in the Vietnam war.
U.S. officials and public health experts have repeatedly compared the country’s efforts to reduce coronavirus to a war, and now a novel coronavirus is claiming more American lives than the Vietnam war. The U.S. national archives says 58,220 U.S. soldiers died in the Vietnam war. The war began in 1955 and ended in 1975.
More than 1 million COVID 19 cases were confirmed in the us on April 28, local time, prompting US President Donald trump to respond that “the number of cases will eventually go down to zero.” He attributed the high number of cases to the fact that “we have a much higher number of tests than other countries.”
In response to the outbreak, trump signed an executive order on April 28 authorizing the defense production act to require U.S. meat processing plants to continue operating during the outbreak to ensure a continued supply of beef, pork, and poultry products to U.S. consumers.
The head of the centers for disease control and prevention, Robert Redfield, said on April 21 that the start of winter in the United States could usher in a second, more severe outbreak, with the overlap of the flu season and the new pandemic threatening “unimaginable” strains on the health care system. Redfield said governments at all levels should use the months to prepare, including improving their detection and monitoring capabilities.
US President Donald Trump on April 11 declared Wyoming a “state of major disaster” for the new outbreak. For the first time in U.S. history, all 50 states, Washington, d.c. and four overseas territories — the U.S. virgin islands, northern Mariana islands, Guam and Puerto Rico — are in a “major state of disaster.”
Another major epidemic in overseas countries, Spain COVID – 19 accumulative total of 236899 cases of the patients, Italy has confirmed 203591 cases, confirmed 166420 cases of France, and Britain has confirmed 65221 cases, Germany has confirmed 161197 cases, Turkey has confirmed 117589 cases, Russia has confirmed 99399 cases, Iran has confirmed 93657 cases, Brazil has confirmed 79361 cases, Canada has confirmed 51597 cases, Belgium has confirmed 47859 cases, the Netherlands confirmed 38802 cases, confirmed 33931 cases of Peru, A total of 33,062 cases have been confirmed in India.
The world health organization (WHO) will hold a meeting of its emergency committee on April 30 to discuss the global outbreak situation and update its response recommendations, the organization’s director-general said on Monday.
It has been three months since the who declared the new outbreak to be a “public health emergency of international concern” at the end of January, tan said at a daily news briefing. According to the provisions of the international health regulations, the world health organization (who) will hold an emergency committee meeting on the 30th to discuss and assess the current situation of the epidemic and update its response recommendations.
The world health organization (who) has expressed concern in Africa, eastern Europe, and Latin America that many countries have inadequate detection capabilities and underreported data, and will continue to support national efforts through its regional and country offices.