On Thursday (May 21) Asian market, international spot gold in a narrow range of $1,740 – $1,750 range, the overall still maintain a high consolidation posture.
Gold bounced above $1,740 the previous day, generally holding firm amid uncertainty over massive stimulus measures and coronavirus vaccines, but gains were limited by improving risk appetite amid growing hopes for an economic recovery.
Worldometers world real-time statistics show that as of 09:32 Beijing time on May 21, the global total number of confirmed covid-19 cases exceeded 5.08 million, reaching 5,085,066, and the total number of deaths exceeded 329,000, reaching 329,721.
Among them, the United States has the highest number of confirmed covid-19 cases in the world, with more than 1.59 million cases, or 1,591,991 cases, and more than 94,000 deaths, or 94,994 cases.
On Wednesday, the U.S. senate unanimously approved the Holding Foreign Companies Accountable Act, which requires certain issuers of securities to prove they are not owned or controlled by Foreign governments.
The bill requires companies that want to go public in the United States to prove they are not controlled or owned by the government, and they are subject to an audit process that can be checked by the public company accounting oversight board (PCAOB).
The bill applies to all foreign companies seeking to list in the United States, but lawmakers said measures to strengthen disclosure were aimed primarily at Chinese companies.
Us media believe the bill could eventually prevent many companies from listing on us stock exchanges or from being delisted.
The bill was introduced by republican senator John Kennedy of Louisiana and has bipartisan support. The bill passed unanimously in the senate. It must then be passed by the house of representatives and signed into law by President trump.
Related news caused many Chinese stocks to fall, on May 20, alibaba intraday down 1.14%, baidu down 1.81%, pinduoduo down 3.67%, netease down 2.7%, jingdong down 0.85%, recently shorted by the who learn a one-day plunge of 11.17%, facing suspension of lucking coffee loss 37.02%.
Carson Block, founder of short seller muddy waters, supported the bill. “after a decade of discussion about some foreign companies defrauding American investors, we are happy to see the bill pass the senate and we hope the congressional bill becomes law,” he said.
As for gold, “the fact that demand for safe-haven assets like gold has declined and gold continues to slowly rise speaks volumes about its underlying momentum coming from the idea of central Banks and the economy pumping liquidity across the board,” said David Meger, director of metals trading at High Ridge Futures in New York.
On the daily chart, the dollar index is now trading around 99.35, as it tries to stabilize after three days of losses, and is focused on holding the 99 level. On a technical level, the MACD green kinetic energy column expanded slightly, while the KDJ random fell below the 50 level, suggesting bearish dollar momentum is still building, before extending its decline.
As you can see on the 4-hour chart, the dollar index continued to oscillate lower as it attempted to rebound from its low of 99.00, below its main moving average. MACD green kinetic energy column continues to shrink, KDJ random index turned higher, indicating the dollar may rebound in the short term.
Daily chart, the gold price hovering above $1740, overall maintain a high consolidation trend, still above the main moving average. The MACD red kinetic energy column is still weak, and the KDJ stochastic index is hovering slightly below the overbought level, suggesting gold has run out of momentum in the short term and may continue to consolidate.
On the four-hour chart, gold has since rebounded from a precipitous fall of $1,765 to around $1,725, with the focus on breaking out of the previous high. MACD green kinetic energy column slightly expanded, KDJ random index down close to 50, indicating gold short – term or continued pressure.
Fundamental positive factors:
- Worldometers world real-time statistics show that as of 09:32 Beijing time on May 21, the global total number of confirmed covid-19 cases exceeded 5.08 million, reaching 5,085,066, and the total number of deaths exceeded 329,000, reaching 329,721. Among them, the United States has the highest number of confirmed covid-19 cases in the world, with more than 1.59 million cases, or 1,591,991 cases, and more than 94,000 deaths, or 94,994 cases.
- The fed minutes reaffirmed their commitment to using all policy tools to support the economy. “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 added.
- The United States has issued new sanctions against Iran, seeking ways to prevent Iran from selling oil to venezuela.
- U.S. President Donald trump on Tuesday announced rules for a $19 billion U.S. farm aid program that will allow farmers to begin filing applications next week. The usda has announced that farmers who suffer a price loss of 5 percent or more can receive direct payments of up to $250,000 each.
Fundamental negative factors:
- The growth of covid-19 in the United States has slowed down slightly recently, and many states in the United States have lifted epidemic prevention restrictions to varying degrees and restarted their economies. By May 20, local time, all states had entered the restart phase.
- As of Wednesday, every state in the United States will begin unwinding measures put in place weeks ago to contain the spread of the coronavirus — even as the daily rate of new cases continues to rise in some parts of the country. The last state to lift some restrictions is Connecticut, which will allow outdoor dining venues, offices, retail stores and malls, museums and zoos to reopen with restrictions on Wednesday.
- Us biotech company Moderna says that the vaccine mrna-1273 for covid-19 is safe and well tolerated; The final phase of vaccine trials is expected to begin in July. Dynavax, an American biopharmaceutical company, followed with good news. A novel coronavirus vaccine trial could take place as early as July, the company said.
- The announcement that European countries would lift travel restrictions in the schengen area and agree to set up a 500 billion euro recovery fund strengthened market expectations for the lifting of restrictions on developed economies.