International spot gold was trading at $1,757 an ounce in early Asian trading on Monday (June 22). The day’s volatile session saw the gold price accelerate further to hit $1,758.58 an ounce, up more than $15 from the session low and extending gains to 0.80%.
Recently, the global epidemic has not been stable and under control, and geopolitical risks are constantly erupting. In addition to the uncertainty of China-Us relations, the conflict between China and India has once again become the focus of market risks. There was fresh news over the weekend and risk aversion was still simmering at the start of the week.
Indian Prime Minister Narendra Modi delivered a key speech at an all-party conference the day before, the Hindustan Times reported June 20, citing two unnamed Indian military officers. His speech was the main spirit of the Indian army border force major changes have taken place in the rules of engagement, that is to say, the line of actual control of the country near the frontline officers and men will no longer be limited to the use of guns, but the “situation”, even in “deal with special cases”, use weapons will have “complete freedom of action”, and has all the power of using all available resources.
Daniel Pavilonis, senior commodity broker at RJO Futures in New York, expects gold to fall back as it remains in a trading range. “Gold still seems to be stuck in a range,” he said. “If I had to pick a side, gold would probably be on the downside in the coming week. We are now at the high end of the price range. So maybe we’ll pull back a little bit.”
Adrian Day, chairman and CEO of Adrian Day Asset Management, also expects prices to weaken in the short term. “Gold is still expected to fall back but, given long-term fundamentals, it is resisting and the pullback is very tentative and any surprises could lead to a recovery.” Expect gold to fall in the coming week. “Judging from ETF inflows and coin sales, gold has gone up too fast, too fast and is losing momentum.”
On the daily chart, the U.S. dollar index continued its recent rally trend, with the daily MACD red kinetic column expanding slightly and the KDJ random index continuing to move higher, indicating the strengthening of the U.S. dollar rally momentum, which is expected to continue in the near future.
In the 4-hour chart, the DOLLAR index also showed a mild rebound trend, with the MACD red kinetic energy column slightly narrowed and the KDJ stochastic index slightly under pressure, indicating that the dollar’s short-term rebound kinetic energy is slightly insufficient and may come under pressure later.
On the daily chart, gold staged a rebound, MACD red column slightly expanded, KDJ random index turned higher, indicating gold rally momentum slightly strengthened, the next to continue to expand the momentum of the rebound.
In the 4-hour chart, gold prices fluctuate significantly higher, the MACD green momentum column expanded, and the KDJ random index rose, indicating strong short-term upward momentum for gold, and the coming rally will continue.
Fundamentals positive factors:
- According to statistics from Worldometers, as of June 22, Beijing time, more than 9.03 million cases and 460,000 deaths of COVID-19 have been confirmed worldwide. In the United States, there have been more than 2.35 million confirmed coVID-19 cases and more than 120,000 deaths.
2.The United States is taking cautious steps to prepare for a second wave, White House trade adviser Navarro said in an interview with CNN on Sunday.
3.Prime Minister Narendra Modi delivered a key speech at an all-party conference the day before, the Hindustan Times reported June 20, citing two unnamed Indian military officials. His speech was the main spirit of the Indian army border force major changes have taken place in the rules of engagement, that is to say, the line of actual control of the country near the frontline officers and men will no longer be limited to the use of guns, but the “situation”, even in “deal with special cases”, use weapons will have “complete freedom of action”, and has all the power of using all available resources.
- PepsiCo issued another statement to ensure that all products in the new place have been sealed after the outbreak; All employees at the factory have been quarantined at home. PepsiCo said in a statement that its seven food plants in China are affected by the outbreak in Beijing’s Xinfadi wholesale market only at a factory in Beijing’s Ciwei Road, which produces small quantities of Lay’s unlimited canned potato chips.
Fundamentals negative factors:
1, by the Chinese academy of medical sciences institute of medical biology will be invented independently coronavirus inactivated vaccines, on June 20, afternoon in yunnan honghe Ⅱ phase of clinical trials.
2.Wu Zunyou, chief epidemiologist with the Chinese Center for Disease Control and Prevention, said on Thursday that the epidemic in Beijing was under control and that if a curve was drawn to show the peak of the disease on June 13, the number of cases would be lower and lower.
3.On June 18 local time, who chief scientist Sumiya Swaminathan said that at least 200 coVID-19 vaccines are under development and about 10 are in human trials, three of which will soon be in phase III clinical trials, including one from China. China has several vaccine candidates, and results from phase I and phase II clinical trials show promise. One or two successful vaccine candidates could emerge by the end of the year.
- U.S. Trade Representative Robert Lighthizer said on June 17 that China has continued to honor its commitments under the first phase of the trade agreement signed by the Two countries at the beginning of the year, even as it has been affected by the epidemic and issues in Hong Kong.