International spot gold traded at $1,570.40 an ounce in early Asian trading on Tuesday. The price of gold rose in a volatile session, hitting a high of $1,576.90 an ounce, but has since retreated and is maintaining its downward momentum.
Daniel Ghali, the commodity strategist at TD Securities, said: “the coronavirus scare continues to drive safe-haven flows into gold, which has had a positive impact on gold prices. At the same time, trading is very crowded, which means gains tend to be held back as people take advantage of selling metals to make money.”
“Technically, gold now faces resistance at $1575, and a significant move beyond that level could create room for further gains, with the first target at $1,600 an ounce,” Carlo Alberto De Casa, chief analyst at ActivTrades, said in a note.
Rick Rule, chief executive of Sprott U.S., a prominent gold bull, said gold demand could surge as investors explore uncharted territory amid historically low bond yields and even negative growth in some parts of the world.
On the news, according to CCTV news reports, on February 10, hubei provincial party committee standing committee decided: removed zhang jin from the provincial health committee secretary post; Liu yingzi was relieved from the post of director of the provincial health commission; The two positions mentioned above shall be held concurrently by the newly appointed member of the standing committee of the provincial party committee, comrade wang hesheng.
According to CCTV News on February 8, recently, the central committee of the communist party of China approved: comrade wang hesheng appointed hubei provincial party committee member, standing committee.
Outbreak, according to the national WeiJianWei latest bulletin, Feb. 10, 0-24, 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps report, new confirmed cases, 2478 cases (2097 cases) of hubei province, and severe cases 849 cases (839 cases) of hubei province, the new death cases, 108 cases (103 cases of hubei, Beijing, tianjin, heilongjiang, anhui, henan 1 case), the new suspected cases 3536 cases (1814 cases) of hubei province.
A total of 716 newly cured and discharged cases (427 in hubei) were reported, and 26,724 close contacts were released from medical observation.
Next need to continue to pay attention to the situation of the pneumonia epidemic, alert to market sentiment to cause major market volatility. Meanwhile, markets are looking forward to federal reserve chairman colin Powell’s two-day speech to the U.S. Congress starting Tuesday, particularly comments on the China-related virus.
Fed chairman colin Powell will testify before the house and senate on Tuesday and Wednesday on the semiannual monetary policy report. He will testify before the house of representatives at 23:00 on Tuesday evening.
On the daily chart, the U.S. dollar index held steady on its recent rally, with the MACD red momentum column continuing to expand and the KDJ random index moving higher, indicating strong U.S. dollar rebound momentum and continued recent gains in incoming stocks.
On the 4-hour chart, the dollar index held steady to a high of 98.89, continuing its upward trend. Technically, the MACD red momentum column held steady, while the KDJ random index edged slightly higher, indicating that the dollar will also continue to rise in the short term.
On the daily chart, gold maintained its modest rebound from recent lows and continued to stay above its 20-day moving average. Technically, the MACD green kinetic energy column is unchanged, and the KDJ random index is moderately flat, indicating that gold is likely to remain stuck in a period of consolidation.
On the 4-hour chart, gold temporarily retreated slightly, the MACD red momentum column narrowed, and the KDJ random index turned sharply lower, indicating that gold may continue to fall under pressure in the short term.
Fundamentals favorable factors:
1, ending at 10th February 24, according to the 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps, the existing 37626 cases of confirmed cases of 7333 patients with severe cases (), accumulative total hospital cured cases 3996 cases (zhejiang subtract 1 case), the cumulative death cases, 1016 cases, has reported 42638 cases of confirmed cases (subtract 12 cases of zhejiang, jiangxi nuclear increased 1 case), the existing 21675 cases suspected cases. A total of 428,438 close contacts were traced, and 187,728 close contacts were still under medical observation.
2. Philadelphia fed President Richard Harker said on Monday that the fed was monitoring the impact of the outbreak, but added there was not much it could do.
3. The number of cases outside China could be the “tip of the iceberg”, the world health organization has said, as new deaths from coronary pneumonia surpass those from the SARS epidemic of 2002-03.
4. On February 5, the world health organization (WHO) announced the launch of a “strategic preparedness and response plan” for the new coronavirus outbreak, which aims to guide the development of outbreak response plans at a different country or regional level.
Fundamental negative factors:
- A team of world health organization (WHO) experts left for China on Sunday (February 9) to help contain the outbreak of the new coronavirus, WHO director-general Tedros Adhanom Ghebreyesus said on twitter.
2. The U.S. labor market strengthened further on Friday after the labor department reported that nonfarm payrolls rose 225,000 in January, well above Wall Street expectations of 160,000 and revised to a gain of 147,000.
3. The number of Americans filing new claims for jobless benefits fell to a nine-month low on Thursday, falling to 202,000 in the week ended February 1. The data showed that a tight labor market will continue to support the U.S. economy this year.
4. The tariff commission of the state council announced on February 5 that it had decided to adjust the tariff measures on about 75 billion U.S. dollars of imports from the United States. Starting from 13:01 on February 14, 2020, the tariff rate for goods that have been subject to a 10% tariff since September 1, 2019, will be adjusted to 5%; For goods already subject to a 5% tariff, the rate will be adjusted to 2.5%.