International spot gold traded at $1,582.40 an ounce in early Asian trading on Monday. Gold initially wobbled to $1,584.89 an ounce before retreating from that point and is currently stuck above the $1,580 mark.
The people’s bank of China (pboc) launched a 200 billion yuan medium-term lending facility (MLF) and a 100 billion yuan seven-day reverse repo operation on Feb. 17 to hedge the impact of the central bank’s reverse repo expiration and maintain reasonably abundant liquidity in the banking system, the central bank said in a statement on Monday.
According to the central bank announcement, the one-year MLF operation bid-winning rate is 3.15%, compared with 3.25% last time.
Chinese stocks extended their rally after the central bank cut interest rates, with the Shanghai index up more than 1 percent and the chinext index up nearly 2.3 percent, while gold maintained a volatile retreat.
On February 11, UBS investment research, chief China economist wang tao had predicted that China’s central bank will continue to expand liquidity, keep credit and bond market interest rates in the low post, there was another MLF is expected in February (medium-term lending facilities) cut interest rates, by 10 points, LPR (base lending rate) the size of the drop may be greater.
In terms of epidemic situation, from 0 to 24:00 on February 16, 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps reported 2,048 new confirmed cases, 105 new deaths (100 in hubei, 3 in henan and 2 in guangdong) and 1,563 new suspected cases, according to the latest bulletin of the national health and fitness commission.
On the same day, 1425 new cases were cured and discharged from hospital, 28,179 close contacts were released from medical observation, and 628 cases of severe illness were reduced.
As of 24:00 on February 16, the 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps reported 57934 confirmed cases (including 10,644 severe cases), 10,844 cured and discharged, 1,770 deaths, 70,548 confirmed cases and 7,264 suspected cases. A total of 546,016 close contacts were traced, and 150,539 close contacts were still under medical observation.
Rhona O ‘connell, head of market analysis for Europe, Middle East, Africa and Asia at INTL FCStone, told Kitco News on Friday: “if gold is going to go higher, it’s going to be some kind of external shock that could push gold higher.”
Jennifer McKeown, head of global economic services at Capital Economics, and Bethany Beckett, assistant economist, said the biggest risk the coronavirus needs to watch for is that it could trigger a “black swan” event in China or elsewhere in the world.
Resistance for gold remains at $1,600, and prices remain close to that encouraging level, said Everett Millman, an expert on precious metals on Gainesville Coins.
On the daily chart, the dollar index held its recent upward trend, peaking at 99.19. Technically, the MACD red kinetic energy column has narrowed slightly, while the KDJ random index is slightly under pressure, indicating a slight slowdown in the dollar’s upward momentum.
On the 4-hour chart, the dollar index settled in a narrow range near a high, the MACD green momentum column widened slightly, and the KDJ random index turned down, indicating a pause in short-term upward momentum for the dollar before continuing to fall slightly.
On the daily chart, gold continued to rally for the time being, with the MACD green momentum column narrowing slightly, and the KDJ random index significantly higher, indicating that gold’s upward momentum has strengthened, and the incoming materials continue to rebound.
On the 4-hour chart, the gold price maintained a moderate upward trend, the MACD red momentum column was slightly narrowed, and the KDJ random index was slightly under pressure, indicating that gold may decline slightly in the short term.
Fundamentals favorable factors:
1, on Monday (Feb. 17) according to hubei province WeiJianWei bulletin, as of February 16, 24, according to the 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps, the existing 57934 cases of confirmed cases of 10644 patients with severe cases (), the cumulative cured cases, 10844 cases of hospital, the cumulative death cases, 1770 cases, has reported 70548 cases of confirmed cases, the existing 7264 cases suspected cases. A total of 546,016 close contacts were traced, and 150,539 close contacts were still under medical observation.
2.U.S. data on Friday showed consumer spending slowed further in January, with sales of clothing stores falling at their steepest pace since 2009, a trend that could raise concerns about the economy’s ability to continue expanding at a moderate pace. Excluding autos, gasoline, building materials and food services, retail sales were flat from a month earlier. The December figures were revised down to show so-called core retail sales rose 0.2 percent, instead of the previously reported 0.5 percent jump and an expected 0.3 percent rise. Core retail sales are most closely related to the consumer spending component of gross domestic product.
3. Industrial production fell 0.3 percent in January after falling 0.4 percent in December, the federal reserve said in a report on Friday. Industrial output was weighed down by a 4.0 percent fall in utility production. A 7.4 percent plunge in aerospace and other transportation equipment production also weighed on industrial output in January.
4.According to CCTV news, the k-1 military base near the northern Iraqi city of kirkuk was hit by rocket fire on the evening of February 13, local time. In addition to Iraqi federal police and counterterrorism personnel, the base also has a U.S. military presence. According to the Iraqi journalists’ association, military aircraft were flying at low altitudes after the attack, despite bad weather conditions. Sources say the weapon may also have been a missile.
Fundamental negative factors:
- The people’s bank of China (pboc) issued the latest announcement on Monday (February 17), saying that on February 17, the people’s bank of China (pboc) launched the 200 billion yuan medium-term lending facility (MLF) and 100 billion yuan seven-day reverse repo operation to hedge the impact of the central bank’s reverse repo expiration and other factors and maintain reasonable and abundant liquidity in the banking system.
- Separate data released on Friday showed the university of Michigan’s preliminary consumer confidence index rose to 100.9 in February, close to its March 2018 expansion peak of 101.4. Meanwhile, the university of Michigan’s preliminary expectations index for February rose to 92.6, the second-highest level in the long-term expansion.
3.The latest data from the U.S. labor department showed on Thursday that the U.S. consumer price index (CPI) rose 2.5% in January from a year earlier, compared with an expected 2.4% from 2.3%. U.S. core consumer prices rose 2.3 percent in January from a year earlier, compared with expectations of 2.2 percent. Some commentators pointed out that the CPI data showed that basic consumer prices rose as households spent more on rent and clothing, which supported the fed’s view that inflation would gradually rise to the 2 percent target.
4.Zhong nanshan, head of the high-level expert group of China’s national health and fitness commission, said in his latest assessment of the outbreak of the new coronavirus on Tuesday that the outbreak is expected to peak in February and possibly end in April.