Spot gold traded in a tight range around $1945 in Asian trading on Thursday, breaking through the 1950 mark earlier in the day, while silver tried to hold its ground above $27. In the current session, markets are focused on the European Central Bank meeting.
Gold rallied yesterday as a report on the European Central Bank boosted the euro and hit the dollar, hitting the 1950 level at one point, up $15 a day.
Bloomberg News reported on Wednesday that the ECB’s forecast for economic growth and inflation, to be released on Thursday, would be only a slight change from its Forecast in June. GDP will be revised upwards this year and private consumption will be better than expected. The report was released ahead of the European Central Bank’s monetary policy meeting on Thursday.
ECB Board member Axel Schnabel earlier said economic developments since June had been broadly in line with the central bank’s expectations, so the bank’s “baseline forecasts” remained in place.
The recent strengthening of the euro is causing concern among European policymakers. Markets are bracing for a key European Central Bank decision today, with some speculating that the ECB could take steps such as verbal intervention to further shore up Europe’s economic recovery in response to the euro’s recent rise.
Shaun Osborne, chief currency strategist at Scotiabank in Toronto, said: “This comes after ECB officials said earlier that the euro is again in the ECB’s sights. If they are more confident about the economic outlook, that means they may be less worried about the exchange rate.”
As well as the ECB’s comments, markets are still focused on geopolitical risks such as the US-China situation and border clashes between China and India.
In recent days, The Indian Special Border Force has frequently appeared along the China-India border. New Delhi: Senior Indian officials attended the funeral of a special Border force soldier who was killed last week when he stepped on a land mine during an operation on the south bank of Lake Banguong, China’s Shenzhen SATELLITE TV reported. It is not hard to see that members of India’s Special Border Force have been involved in the dispute.
The ITBP is part of the Bureau of Research and Analysis, which is directly under the Cabinet Secretariat of the Indian Government.
China has repeatedly sent out various messages of active war preparation in the western Theater of The PEOPLE’s Liberation Army (PLA) after the Indian army illegally crossed the border line on July 7 and fired threats against the Chinese border troops on their way to negotiate.
A few days ago, CNR revealed that a special combat brigade of the Xizang Military Area Command and an army aviation brigade jointly organized the first organized parachute descent training on the plateau in an unfamiliar region with an altitude of more than 4,000 meters. While exploring ways to expand integrated military training, they also focused on improving the three-dimensional assault capability of the plateau officers and soldiers and exercising the all-round combat capability of the troops stationed in Tibet.
An air force station under the PLA Central Theater Command has been ordered to participate in plateau training, the PLA Central Theater Command said Wednesday. Participating in the mission are a regiment of the PLA Air Force Aviation Division, which is equipped with H-6H and H-6K bombers. “As long as the mission requires, we are ready!”
On Sept. 9, the People’s Liberation Army Daily revealed that a brigade under the Xizang Military Command recently organized multi-type main battle equipment to conduct a multi-type live-fire drill at an altitude of more than 4,900 meters. The report showed footage of the drill. The footage showed a barrage of simultaneous rocket fire during the exercise.
Song Zhongping, a Chinese military commentator, pointed out that parachuting and parachuting on the plateau were more suitable for rapid deployment of troops than military movements on land. In wartime, the mission area in which troops are projected by parachute may be a conflict area or it may be projected to the enemy’s rear to cut off his retreat. According to different tactics, the troops can be projected by parachute descent, and the tactical targets can be realized in the battle, such as quickly infiltrating and seizing the commanding point of the battlefield, and cutting off the enemy’s retreat way by circuitous means.
In addition to military conflicts, India has introduced stricter visa regulations for Chinese citizens, on a par with other “Prior Referral Category” countries such as Bangladesh, Afghanistan, and Pakistan, which means thorough background checks are required before visas are issued, the Economic Times of India reported Thursday.
Officials said the home Ministry’s latest guidelines on issuing business visas referred to “specific requirements for Chinese citizens when applying for a visa”, including reporting to the Ministry’s Foreign Affairs Office (FRRO) in some cases. In addition, citizens of Afghanistan, China, Iraq, Sudan, foreigners of Pakistani origin and stateless persons are required to visit India twice on tourist visas at least two months apart.
On the daily chart, the DOLLAR index.DXY came under further pressure after retreating from yesterday’s high and was trading in a narrow range around 93.15. The daily chart MACD red kinetic energy column turns to steady, with the KDJ stochastic approaching the overbought level, indicating that the short-term bullish momentum is stable, or further volatility.
On the 4-hour chart, the DOLLAR index.DXY hit a high of 93.66 and quickly moved lower, now close to its 200-day moving average. The MACD green momentum column gradually expanded, with the KDJ random index falling below the 50 level, indicating stronger bearish momentum for the dollar and further short-term weakness.
On daily charts, gold remains in its recent volatile pattern, trading around $1,945. The daily chart MACD green momentum column gradually weakened, and the KDJ random index held steady below the 50 level, indicating that gold bearish momentum weakened, or further volatility.
The 4-hour chart shows gold continuing its rally from a low of $1,906 and trading around its 100-date average. The MACD red momentum column was largely stable, while the KDJ random index hit an overbought level, indicating solid bullish momentum for gold and short-term caution against overbought triggering a correction.
On the daily chart, silver continued its volatile trend in previous days and is now trading around the $27 mark. The daily MACD green momentum column weakened slightly, with the KDJ random index falling below the 50 level, indicating weaker bearish momentum for silver and further price volatility.
On the 4-hour chart, silver tries to oscillate higher above its 200-day moving average, keeping an eye on whether it can hold the $27 mark. The MACD red momentum column is gradually expanding and the KDJ random index has hit the overbought level, indicating that silver bullish momentum is strengthening and short term or further choppy higher.
Fundamentals positive factors:
The United States has revoked the visas of more than 1,000 Chinese nationals as of this week, a State Department spokesman said on Wednesday. The move is part of the Trump administration’s efforts to block the entry of Chinese students and researchers whom the U.S. believes have ties to the Chinese military.
- Chinese Foreign Ministry Spokesman Zhao Lijian said at a regular press conference on September 8 that the Indian side’s actions seriously violated the provisions of relevant agreements between China and India, and its military provocations were of a very bad nature. The Chinese troops under the theater of Operations will resolutely perform their duties and missions and safeguard China’s territorial sovereignty.
- Indian and Chinese troops faced off in eastern Ladakh on Wednesday, just a few hundred metres apart, according to Indian officials. Meanwhile, a brigade under the Xizang Military Region recently organized multi-type main battle equipment to conduct a multi-type live-fire drill at an altitude of more than 4,900 meters.
- The US will take steps on Tuesday to ban imports of cotton and tomato products from China’s western Xinjiang region because of allegations of “forced labor production”, customs and Border Protection officials said.
- Shares of AstraZeneca PLC plunged 6% in after-market trading after CNBC reported that the drug maker had called off phase III clinical trials of its COVID-19 vaccine.
Fundamentals negative factors:
- Major U.S. stock indexes ended higher Wednesday, snapping a three-day losing streak, as investors took advantage of a pullback in technology stocks and a day after the Nasdaq confirmed it was in correction territory.
- In a post on social media on Monday, Ms. Von Der Leyen urged Mr. Johnson to abide by the commitments made in the Brexit agreement signed late last year. Brexit turmoil hits euro, boosts DOLLAR
- On Friday, the LABOR Department released its non-farm payrolls report, which showed 1.71 million new jobs were created in August, against market expectations of 1.35 million. The jobless rate was 8.4 percent and the market was expecting 9.8 percent, a fourth straight month of improvement, boosting confidence in the U.S. economy
- U.S. Treasury Secretary Steven Mnuchin says the White House and Congress will reach an agreement to fund the federal government through early December, with details of the bill to be finalized next week. The measure would keep U.S. government agencies open to avoid a government shutdown after existing funding ends Sept. 30. Mnuchin and House Speaker Nancy Pelosi have agreed to expand funding, according to a Democratic aide.