Spot gold continued to hover around the 1560 mark in Asian trading on Thursday, falling as low as $1559, with little overall volatility.
Gold was up slightly last day, hitting $1,567 as high as $1,550 and dipping as low as around $1,550 before closing successfully above the 1560 level as concerns about the new coronavirus outbreak cut risk appetite.
Ilya Spivak, the senior currency strategist at DailyFx, said there appeared to be no clear direction for the entire gold market.
Analysts at ANZ said in a report that low-interest rates and easy monetary policy were the reality of the day, which was positive for gold investment demand. “However, gold is still likely to fall as investors choose to take profits.”
According to the latest data from the national health and health commission, as of 24:00 on January 23, the national health and health commission has received a total of 830 confirmed cases of pneumonia from 29 provinces (autonomous regions and municipalities directly under the central government), of which 177 were severe cases and 25 died, including 24 in Hubei province and one in Hebei province. 34 cases have been cured and discharged from the hospital. A total of 1,072 suspected cases have been reported in 20 provinces (autonomous regions and municipalities directly under the central government).
23 night, who held a press conference, said the announcement “public health emergency of international concern” too soon to say, the new type of coronavirus pneumonia outbreak in China is an emergency, but not as is an international emergency because the current outbreak is relatively complex, the number of infections is still not up to the standard of the emergency events.
In addition to continuing to track the outbreak in Wuhan, the market will also focus on the last tradable event of the week, the preliminary PMI data for January in Europe and the US, which could trigger short-term market volatility.
On the daily chart, the dollar index mostly held on to overnight gains, trading around the one-month high of 97.80 hits overnight and testing the 200-day moving resistance. In terms of technical indicators, the MACD red momentum column was basically stable, the RSI index was slightly above the 50 levels, and the KDJ index hit the overbought level.
On the 4-hour chart, the dollar index showed a significant late-day rally and is now trading at an estimated 97.70, above all moving averages. In terms of technical indicators, the MACD red kinetic energy column showed an initial appearance with weak momentum. The RSI index traded slightly above 50, and the KD index rebounded above 50, indicating that the short-term upward momentum was not strong.
On the daily chart, gold continued to come under slight pressure, currently trading around the 1560 mark, before edging higher to close above the 1560 mark and above the main moving averages. In terms of technical indicators, the MACD green kinetic energy column expands gradually, the RSI index hovers above the level of 50, and the KD index rises to the level of 50.
On the 4-hour chart, gold is still in its recent tight range of volatility, with the overall pattern of a climb, currently hovering above the main moving averages. According to the technical indicators, the MACD red kinetic energy column is very weak, the RSI index hovers above 50, and the KD index is above 50.
Fundamentals favorable factors:
- By 24:00 on January 23, the national health commission had received a total of 830 confirmed cases of pneumonia from 29 provinces (autonomous regions and municipalities directly under the central government), of which 177 were severe cases and 25 died, including 24 in Hubei province and 1 in Hebei province. 34 cases have been cured and discharged from the hospital. A total of 1,072 suspected cases have been reported in 20 provinces (autonomous regions and municipalities directly under the central government).
- China has reported a total of 571 confirmed cases of pneumonia caused by the new coronavirus, with 17 deaths, the national health and health commission said on Thursday.
- US President Donald Trump has again attacked the federal reserve for raising interest rates, saying that if it had not been for the fed’s dramatic increase in interest rates, US GDP would have grown by nearly 4% and the dow would be 5,000 to 10,000 points higher than it is today. He also said the Boeing problem and general motors strike were also weighing on economic growth.
- US President Donald Trump said on January 21 that he would seriously consider imposing tariffs on cars imported from Europe if a fair deal could not be reached. But he later said he wanted to reach a deal with the eu on tariffs on cars. In addition, he threatened to impose a 100% tariff on French wine. The Commerce Department later confirmed that it had not issued the auto report, saying it would hamper “ongoing negotiations between Europe and the United States on auto tariffs.”
Fundamental negative factors:
- The world health organization (who) said on Thursday that it was too early to declare a new coronavirus outbreak in China and neighboring countries a “public health emergency of international concern”, but that it would closely monitor the development of the outbreak.
- US President Donald Trump said on January 23 that he plans to unveil a Middle East peace plan sometime before Israeli prime minister Benjamin Netanyahu’s visit on January 28.
- British prime minister Boris Johnson’s Brexit bill has passed the house of lords on January 22, clearing his final hurdle in parliament and becoming law with royal assent.
- The bank of Japan held monetary policy steady on Tuesday, raising its growth forecast slightly and signaling cautious optimism about the global economy, but said continuing risks meant it was too early to consider scaling back its massive stimulus program.