Spot gold continued to come under pressure in the Asian session on Wednesday, briefly dropping more than $5 to trade near $1,895. Silver, meanwhile, briefly fell below the $24 mark, down 1.57% on the day. The DOLLAR index.DXY maintained gains and was trading near 94.15. Spot gold closed at $1,898.81 an ounce, down $13.42, or 0.70 percent, after touching as low as $1,894.52 and as high as $1,919.61 an ounce. The dollar index.DXY closed up 0.48 percent at 93.98, hitting an intraday high of 94.08 and a low of 93.47, its strongest two-day gain since April.
At 10:00 Beijing time on Wednesday, the Federal Reserve of New Zealand announced its latest interest rate decision, leaving the benchmark interest rate unchanged at 0.25%. The decision was unanimously adopted, in line with market expectations. The Fed maintained its massive asset purchase program (LASP) at a ceiling of NZ $100 billion. The RNZ also expected to keep the base rate on hold until June 2022, although members agreed that a reduction in the official cash rate (OCR) would complement other monetary policy tools and that it was prepared to lower the OCR if necessary to provide additional stimulus. At the same time, the provision of term financing through the Financing loan programme at rates close to OCR will reduce funding costs and borrowing costs.
On Tuesday, Federal Reserve Chairman Colin Powell and Treasury Secretary Steven Mnuchin appeared together in the House of Representatives for a regular congressional hearing on the fiscal stimulus bill passed in March. Overall, the two men’s statements were in line with market expectations, with their upbeat tone on the recovery and emphasis on the importance of further fiscal stimulus.
Mnuchin said that while half of the jobs lost to the outbreak have yet to be recovered, he still expects the U.S. economy to recover faster than at any time since the previous crisis. In his testimony, Powell also noted a significant rebound in economic data, but emphasized that expectations for a rebound are based on strong financial support, that labor markets and economic activity remain significantly weaker than before the outbreak, and that the path of the rebound is highly uncertain and highly dependent on outbreak control and “government at all levels.”
Asked what would happen if there was no further stimulus, Mr Powell said bluntly that he did not know what would happen, but there were risks, such as us consumers subsisting on the benefits they had saved over the past few months.
On the subject of congressional concern about the slow progress of the Main Street lending program, Mr. Mnuchin said there were limits on the funding for the Fed’s tools, but the Treasury secretary said he would seek legislation to redirect some of the money to “more useful channels.”
Fundamental positive factors
According to world real-time statistics, as of 7:24 PM Beijing time on September 23, the total number of confirmed cases of COVID-19 worldwide has exceeded 31.74 million, reaching 31,749,508, and the total number of deaths has exceeded 974,015 with 974,000. The United States has the highest cumulative number of confirmed COVID-19 cases in the world, with 7,095,757 cases exceeding 7.09 million. The cumulative number of deaths has exceeded 205,000, reaching 205,394.
The US House of Representatives on Tuesday overwhelmingly approved a bill that would effectively ban imports of US products from China’s Xinjiang Uygur Autonomous region over alleged use of government-backed forced labor. The new law, passed on Tuesday, means that importers cannot purchase all or part of the products produced in Xinjiang unless the US government can show “clear and convincing” evidence that they were not produced with forced Labour. Lawmakers voted 406 to 3 in favor of the bill, called the Uygur Forced Labour Prevention Act.
- Indian media printed newspaper (The Print) reported Tuesday that The security and strategic research center issued a titled “military action illustrates China’s intentions in The Indian border, The report showed that hole lang (Doklam) crisis since 2017, China in ShiKongXian (LAC) air force base near, air defense positions and helicopter field has more than doubled, shows that its intention to in The future to strengthen military posture in The border dispute with India.
Taiwan leader Tsai Ing-wen on Tuesday visited a military base on a remote island in a show of resolve after China’s recent show of force. Tsai spoke with about 100 air force pilots and crew members at the Magong Air Force Base in Penghu. From there, two pilots took off in taiwan-made Qingguo fighter jets to greet her. She said Taiwan has the “ability” and “determination” to defend its territory, and praised the soldiers for being able to rise into the air in five minutes.
Fundamentals negative factors
1.PANjiva, the global market research arm of S&P, said on Tuesday that US pork exports to China had surged past pre-trade levels thanks to higher shipments from Brazil’s JBS SA and America’s Smith Smith Foods owner WH Group. Panjiva said on Tuesday that JBS’s exports of US pork to China this year as of August 31 were likely to be up 370 per cent from the same period in 2017, while wh Group’s exports were up 90.1 per cent.
2.China and India said On Tuesday they had agreed to stop sending more troops to a Himalayan hotspot near their disputed border and to refrain from any action that could complicate tensions in the region. Wu Qian, a spokesman for China’s defence ministry, said senior military officials from the two countries met on Monday and exchanged views on the border dispute. In a joint news release issued by the Indian government in New Delhi, the two sides agreed to “avoid misunderstanding and miscalculation” and to “refrain from unilaterally changing the situation on the ground”. “The two sides also agreed to hold a seventh round of military commander-level meetings as soon as possible,” the news release said.
- US President Donald Trump said in an interview on Fox television program on September 21 that it is likely that the coVID-19 vaccine will be approved by the end of October. When asked which companies are most likely to develop coVID-19 vaccines, Trump said Pfizer is doing a good job and Johnson & Johnson is probably a little late. He also praised companies like Modena and Astrazeneca that are working on coVID-19 vaccines. Mr Trump said on September 18 that he expected to have enough coVID-19 vaccine ready for “every American” by April, with the first doses to be distributed as soon as they are approved later this year.
Technical analysis of gold:
Viewed from the daily line, the gold range oscillations; Brindle slightly open signs, gold prices fell below the track again after the rally; MACD preliminary deadlock, green column weak kinetic energy, KDJ deadlock, index at around 50, the recent gold price volatility is expected to fall slightly.
From the 4-hour point of view, gold wide shock; Brindle opening, gold prices hovering under the track; MACD dead fork, green column kinetic energy is strong, KDJ bonding, the index is located near 30. Gold short – term volatility weakened but is expected to fall limited. If it falls, it could test Monday’s low of 1882.53 again. Further support looks down to the August 12 low of 1863.16, which will open up new downside space if it is lost.