International spot gold traded at $1, 641.20 an ounce in early Asian trading on Friday. Intraday gold price presents shock pressure, temporarily defend 1640 pass.
Peter schiff, a prominent fund manager and founder of europacific capital, said that traders were still selling gold shares after Monday’s sharp sell-off shocked them. Gold’s rally has been strong, with Monday’s high of $1,690 soon to be replaced. Gold is likely to climb to $2,000 or more.
Stephen Innes, chief market strategist at brokerage AxiCorp in New York, said the biggest correlation between gold’s pullback and bets on a central bank rate cut is a correction that is expected to make the market healthier.
“As the coronavirus situation worsens, gold will move to the $1,700 level in the coming weeks,” said Edward Moya, senior market analyst at broker OANDA.
In terms of epidemic situation, from 0 to 24:00 on February 27, 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps reported 327 new confirmed cases, 44 new deaths (41 in hubei, two in Beijing and one in the xinjiang production and construction corps), and 452 new suspected cases, according to the latest bulletin of the national health and fitness commission.
On the same day, 3,622 new cases were cured and discharged from hospital, 10,525 close contacts were released from medical observation, and 394 cases of severe illness were reduced.
As of 24:00 on February 27, 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps reported 39,919 confirmed cases (including 7,952 severe cases), 36,117 cured and discharged from hospitals, 2,788 deaths, a total of 78,824 confirmed cases and 2,308 suspected cases. A total of 656,054 close contacts were traced, and 65,225 close contacts were under medical observation.
There were 318 new confirmed cases in hubei (313 in wuhan), 3,203 new cured and discharged cases (2,498 in wuhan), 41 new deaths (28 in wuhan), 36,829 confirmed cases (30,179 in wuhan), and 7,633 severe cases (6,775 in wuhan). A total of 26,403 cases were cured and discharged from hospital (15,826 cases in wuhan), a total of 2,682 deaths (2,132 cases in wuhan), and a total of 65,914 confirmed cases (48,137 cases in wuhan). There were 332 new suspected cases (295 in wuhan) and 1989 suspected cases (1,488 in wuhan).
A total of 135 cases have been reported from Hong Kong, Macao and Taiwan: 93 from the Hong Kong special administrative region (26 from the hospital and 2 from death), 10 from the Macao special administrative region (8 from hospital) and 32 from the Taiwan region (6 from hospital and 1 from death).
On the daily chart, the dollar index continued to retreat sharply, while technically, the MACD green momentum column continued to expand, and the KDJ random index further declined, indicating that the dollar’s downward momentum is still strengthening, and further declines are expected.
As shown in the 4-hour chart, the dollar index also maintained a downward pressure trend, with MACD green kinetic energy column holding steady and KDJ random index slightly under pressure, indicating that the short-term downward momentum of the dollar also remained, and incoming materials continued to maintain pressure.
On the daily chart, gold continued to settle just below multi-year highs, the MACD red momentum column narrowed slightly, and the KDJ random indicator came under pressure, indicating that gold’s pullback momentum remained intact and that the pullback could continue.
As shown in the 4-hour chart, the gold price temporarily settled in a narrow range under pressure, the MACD green kinetic energy column remained unchanged, and the KDJ random index significantly lowered, indicating that the short-term downward kinetic energy of gold remained, and the incoming materials continued to maintain pressure.
Fundamentals favorable factors:
1, according to the national bulletin, WeiJianWei 28 to February 27, 24, according to the 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps, existing confirmed cases, 39919 cases of 7952 patients with severe cases (), the cumulative cured cases, 36117 cases of hospital, the cumulative death cases, 2788 cases, has reported 78824 cases of confirmed cases, the existing 2308 cases suspected cases. A total of 656,054 close contacts were traced, and 65,225 close contacts were under medical observation.
2.The U.S. economy grew a modest 2.1% in the fourth quarter, in line with expectations and previous estimates, but faced a crisis in early 2020 due to the rapidly spreading new coronavirus, data showed on Thursday. While there is no firm evidence yet that the new outbreak is affecting the U.S. economy, economists expect the troubled manufacturing sector to be hit by supply chain disruptions and exports.
3.Data released on Thursday showed the number of americans filing for jobless benefits for the week exceeded expectations at 219,000, up from 210,000 and 212,000. Worries about the spread of the virus have prompted markets to sell risky assets such as equities and buy government bonds and gold. Money markets also increased bets that the fed would cut rates further after saying it intended to keep monetary policy unchanged at least until the end of 2020. A rate cut would reduce the cost of holding gold without yield.
4.U.S. orders for durable goods edged down 0.2 percent in January on weak orders for military weapons and a drop in demand for autos, data showed on Thursday. Business investment has been weak, and is likely to remain so given the damage done to the global economy by the spread of the new coronavirus.
5.The epidemic situation in Iran is becoming increasingly serious, and a number of senior officials have been confirmed to be infected with the new coronavirus. Iran’s vice President of women and family affairs confirmed Thursday that she has contracted pneumonia. Iran’s former ambassador to the Vatican confirmed Tuesday that he died of pneumonia.
6.The director-general of the world health organisation (WHO) said on Thursday that the outbreak had reached a “decisive moment” and urged countries to redouble efforts to contain it.
7.The IMF is likely to lower its global growth forecast in its next global economic outlook, an IMF spokesman said.
Fundamental negative factors:
1.The monthly index of pending home sales hit its second-highest level in nearly two years in January, data showed on Thursday, as low mortgage rates boosted sales of previously owned homes. The monthly index of existing U.S. home sales rose 5.2 percent in January from an expected 2.2 percent, after falling 4.9 percent. “With housing starts hovering around 1.6 million units in December and January, plus other factors such as a favorable mortgage rate environment, 2020 presents a very positive sales environment,” said Lawrence, NAR chief economist.
2.New home sales jumped 7.9 per cent in January to an annual rate of 764,000, the highest since July 2007, the Commerce Department said on Wednesday. New U.S. home sales surged to a 12.5-year high in January, a sign of strength in the housing market that could help blunt the impact of the coronavirus on the economy and keep the longest expansion in history on track.
3.Us health officials announced on Tuesday that human trials of a possible new coronavirus vaccine are expected to begin within six weeks. Some analysts believe that this good news or gold late sharp decline behind the reason.
4.On February 25, he zhimin, deputy director of the state intellectual property office, said that radesivir has not been approved for listing in any country in the world, and radesivir is still in the clinical stage. There have been reports in the United States of initial results in the treatment of new coronary pneumonia. We have officially started clinical trials of the drug in a number of hospitals in wuhan, and announced the results of clinical trials on April 27.