Gold investment: Sino-American game intensifies! Gold short – term pull close to $1735! A possible breakthrough?

On Tuesday (May 26), the Asian market, spot gold short – term pull back above $1,730, the global uncertainty continues.

Gold prices fell to close below $1,730 as some investors took profits, but losses were limited by lingering tensions between the U.S. and China and broad stimulus measures by governments around the world.

Worldometers world real-time statistics show that as of 09:45 Beijing time on May 26, the global total number of confirmed covid-19 cases exceeded 5.58 million, reaching 5,587,582, and the total number of deaths exceeded 347,872, exceeding 347,000.

Among them, the cumulative number of confirmed covid-19 cases in the United States exceeded 1.7 million, reaching 1,706,226, and the cumulative number of deaths approached 100,000, reaching 99,805. Both confirmed cases and deaths are the largest in the world.

Tensions between China and the U.S. have become a critical factor in global financial markets. China on Friday announced at the annual session of the National People’s Congress (NPC) the draft decision to establish a sound legal system and enforcement mechanism for the Hong Kong special administrative region to safeguard national security, sparking public opinion around the world.

Us national security adviser Brian o ‘brien said in an interview Tuesday that the us government may impose sanctions on China under the so-called Hong Kong human rights and democracy act if Beijing enforces the law, adding that Hong Kong could lose its status as a global financial center.

“Hong Kong is China’s Hong Kong, and Hong Kong affairs are purely China’s internal affairs,” a Chinese foreign ministry spokesman said on Monday. “what law the hksar makes, how and when it enacts legislation is entirely within China’s sovereignty. If the us side is determined to harm China’s interests, China will take all necessary measures to resolutely respond and counter.”

According to the global times, the Hong Kong issue is essentially part of china-us relations. If the us policy towards China in the past was more about engagement and containment, the current us-china relationship is more about competition and confrontation. Hong Kong is at the forefront of the strategic game between China and the United States. With the major change of the United States’ policy orientation toward Hong Kong, it is logical that the confrontation between China and the United States in Hong Kong will intensify.

Due to concerns about China’s implementation of the new national security law in Hong Kong, can cause us to cancel the Hong Kong laws under “special position” in the United States, Hong Kong’s financial market turmoil on Friday, the hang Seng index fell nearly 1400 points after the stock market, is still “antidiarrheal” on Monday, fell 1.8% in early trading, close to closing down has narrowed to less than 1% in early trading.

The deterioration in sino-us relations has led some investors, such as ubs wealth management, to take a “defensive” stance in Hong Kong. “The bigger risk for global investors is what happens if the broader relationship between China and the us becomes further deadlocked,” said Mark Haefele, chief investment officer.

Afshin Nabavi, senior vice President at precious metals trader MKS SA, said, “with continued global uncertainty, governments pumping money into their economies and interest rates falling, it is highly likely that gold will test new highs sooner.”

Technical analysis:

The dollar

On the daily chart, the U.S. dollar index in the last day after the close of a small pressure, trading around 99.65, the current overall hovering between the 60 and 50 moving average. From a technical point of view, the MACD green kinetic energy column gradually weakened and the KDJ random index hovered below the 50 level, suggesting that short dollar momentum remains and gains are limited.

As can be seen from the 4-hour chart, the U.S. dollar index fell after hitting a high of 99.98 and continued to fall, highlighting the resistance to the 100 mark. It is now trading slightly above its 20-day moving average. The MACD red kinetic energy column continued to contract and the KDJ random index fell below the 50 level, indicating long dollar momentum has weakened and there is still room for a pullback.


On the daily chart, gold continued to trade in a tight range in the previous two days and is now trading around $1,730, above its major moving average. The MACD green kinetic energy column expanded slightly and the KDJ stochastic index moved down towards the 50 level, suggesting gold bears gained momentum and may move lower overall.

On the four-hour chart, gold continues to rally from its previous low of $1,717 and is now nearing its key 50-session moving average of $1,735, with the focus on closing above that level. MACD green momentum continued to weaken, KDJ random index to rise above the 50 level, indicating gold short momentum weakened, short term is expected to rise further.

Fundamental positive factors:

  1. Worldometers world real-time statistics show that, as of 09:45 on May 26, Beijing time, the global total number of confirmed covid-19 cases exceeded 5.58 million, reaching 5,587,582, and the total number of deaths exceeded 347,872, exceeding 347,000.
  2. Michael Ryan, head of who’s health emergency programme, said it was a dangerous assumption to assume that the current decline in infections reflected the natural seasonality of a disease and that the next danger point could be October or November. He stressed that if the virus is allowed to overtake us again and no system is in place to beat it, there is a risk of a second peak.
  3. Who director-general tedros adhanom ghebrev said the who had halted research into hydroxychloroquine as a potential novel coronavirus treatment in the solidarity trial because of safety concerns.
  4. Robert O ‘brien, us national security adviser, said on Sunday that China’s proposed security legislation for Hong Kong could trigger us sanctions and threaten the city’s status as a financial centre.

Fundamental negative factors:

  1. The Japanese government on Monday lifted the state of emergency and will decide on a second supplementary budget on Wednesday to help individuals and businesses hit by the outbreak.
  2. A survey by Ifo, a German think tank, showed that German business confidence rebounded in May after falling sharply the previous month, and business activity gradually returned to normal after weeks of coronavirus-related restrictions.
  3. On May 25, local time, British prime minister Boris Johnson said that today confirmed that Britain can enter the second phase of the relaxation; Some schools will open on June 1st as planned; We’re fighting viruses; A vaccine-related press conference will be held in June, and recent signs of confidence that a vaccine will be ready this year have increased.
  1. The Lancet, an international academic journal, published online the results of the world’s first phase I clinical trial of recombinant adenovirus type 5 vector covid-19 vaccine. The corresponding author of the paper was Chen wei, an academician of the Chinese academy of engineering. The study showed that the covid-19 vaccine, carried by adenovirus Ad5, showed both immunogenicity and human tolerance at 28 days after inoculation, the paper said.

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