Spot gold continued to trade in a tight range around 1640 in Asian trading on Thursday, before falling back to close above 1640 as a stronger dollar and strong risk appetite limited gold’s upside.
Former President Joe biden is set to win 10 of the 14 us states on Tuesday, including the key state of Texas, after a surprisingly strong showing in the super Tuesday primaries. He has a big lead in the delegate count and the democratic convention will be held in July to pick the party’s nominee.
On Super Tuesday, Biden took the lead thanks to the support of African-American voters. This is precisely Mr. Sanders’s weakness.
The field of choice for the Democratic Party’s presidential nominee narrowed Wednesday to a Bernie Sanders/Joe Biden choice to challenge the incumbent, republican President Donald Trump, in the November 3 election. Meanwhile, former New York City mayor Michael Bloomberg pulled out of the race in favor of former Vice President Joe Biden.
“The market is relieved that Joe Biden seems increasingly likely to get the democratic nomination,” said Oliver Pursche, vice chairman and chief market strategist at Bruderman Asset Management. Many Americans, even those who tend to agree with Mr. Trump’s policies, are calling for a unified voice. Joe Biden is a very moderate person.”
Meanwhile, data on Wednesday showed U.S. employers added 183,000 jobs to ADP in February, beating market expectations and a sharp downward revision to 209,000. ADP Vice President of employment data said the job market remained solid, with private employers continuing to add jobs in February.
Separately, US President Donald Trump gave an update on the outbreak. He said vice President mike pence was “doing a great job” in responding to the outbreak, which has only a small number of confirmed cases in the United States.
“There is a lot of focus on U.S. equities and gold is digesting some of yesterday’s post-fed rate cut,” said Michael Matousek, chief trader at U.S. Global Investors. Negative interest rates are being implemented around the world [by many central Banks] and more are likely to come… “There is uncertainty lurking in the epidemic, so it makes sense for investors to include gold in their portfolios.”
On the daily chart, the U.S. index fell for the fourth day in a row to close above the 97 mark, but remained below the main moving average, with bears still dominating. Technically, the MACD green kinetic energy column was stable after a sharp expansion, while the RSI index and the KDJ random index both reached oversold level, or continued to fluctuate in the short term.
On the 4-hour chart, the dollar index fell particularly sharply, continuing to fall from a high above 99.90 to below the 97 mark. With the MACD red momentum column beginning to expand slightly, the RSI and KDJ random indexes hovering around the 50 level, short-term gains are likely to be weak.
On the daily chart, gold is now in a high consolidation trend after a previous surge above $50, with the overall price trading around 1640, above the main moving averages. Technically, the MACD green kinetic energy column is close to disappearing, the RSI index is above the 50 level, the KDJ random index hits the 50 level, short-term or continue to shake.
On the 4-hour chart, gold is trading in a tight range, watching to see if it can hold on to its 50-session moving average after its previous burst. Technically, the MACD red kinetic energy column continued to weaken, and the KDJ random index fell after hitting overbought level, focusing on the possibility of a short-term decline.
Fundamentals favorable factors:
1.South Korea has confirmed 438 new cases of coronary pneumonia, a total of 5,766 cases, according to the headquarters of the central government of the republic of Korea.
2. According to the ministry of foreign affairs of the republic of Korea (rok), the number of countries and regions that have implemented immigration control measures in the rok due to the new outbreak of coronary pneumonia has increased to 94 as of 2 PM Thursday.According to data released by the us centers for disease control and prevention (CDC) and state governments, 158 new cases of coronary pneumonia have been confirmed in the us.
3. The number of confirmed cases of new coronary pneumonia in the United States has reached 153, with 11 deaths and eight cures, according to CNN on Monday, citing the centers for disease control and prevention and state and local governments. The us state of California has announced its first death from a new case of coronary pneumonia, bringing the death toll to 11. Officials in the Los Angeles area declared a state of emergency, saying they had found six new cases of the coronavirus in the past 48 hours.
4. The number of new coronavirus deaths in Italy has risen by 28 in the past 24 hours, with a total of 107 deaths, and the spread of the disease shows little sign of abating, the Italian civil protection agency said. Nearly 3,090 cases have been confirmed in the country, up from 2,502 on Tuesday. Italy will close all primary and secondary schools and universities from Thursday until at least mid-march in an effort to contain a worsening coronavirus outbreak, government sources said. The Italian government will close cinemas and theatres across the country and ban public events in an effort to control the spread of the coronavirus, according to a draft decree drawn up by the government on Wednesday.
Fundamental negative factors:
1.Former President Joe biden made a comeback as the undisputed standard-bearer for the party’s moderates in the super Tuesday democratic primary.
2. A report on Wednesday showed ADP private employment rose more than expected, while the service sector expanded at its fastest pace in a year.
3.Tandesay reiterated that the organization understands concerns about whether the current 2019 coronavirus outbreak constitutes a global epidemic. ‘who is monitoring and analyzing the situation and data all the time,’ he said. If there is evidence that the outbreak has become a global pandemic, who will not hesitate to define it as a pandemic, but it now needs to be seen in a different light.
4. The managing directors of the international monetary fund and the world bank said in a joint statement on Monday that they stand ready to help member countries deal with the human tragedy and economic challenges caused by the coronavirus outbreak in 2019.