Spot gold rose nearly $10 in intraday trading on Wednesday, breaking through $1,880 an ounce and hitting as high as $1,880.82. Spot silver was also higher at $23.42 an ounce, up 1.80 percent on the day. The DOLLAR index was little changed at around 93.84. Earlier in the session, spot gold and silver fell sharply due to a series of factors including U.S. President Donald Trump’s suspension of fiscal stimulus policy negotiations. Spot gold lost five consecutive points in the day, falling to $1874.48, down more than $40 from the daily high, and ended down 1.82% at $1877.88 an ounce. Silver fell even more sharply in cash, extending its losses to more than 6 percent during the day and dropping below the $23 mark before closing down 5.36 percent at $23.06 an ounce. The U.S. dollar index.DXY rebounded strongly to close at 93.84, up 0.42%.
President Donald Trump told House Speaker Nancy Pelosi on Twitter Monday that he would be willing to sign a stimulus bill that would only give out checks. In a previous tweet, he called for the House and Senate to immediately approve a $25 billion airline wage support plan and a $135 billion small business wage protection plan. Both fees would be paid in full from funds not used under the previous protection act.
Key officials from the Federal Reserve and the European Central Bank made speeches one after another
European Central Bank President Christine Lagarde is expected to get more attention than usual when she speaks at a panel discussion marking the 10th anniversary of the European Stability Mechanism on Wednesday. Inflation data on Friday showed a surprise fall in the eurozone in September. ECB officials repeatedly warned in September that the euro’s strong rally this year could pose risks to the central bank’s inflation outlook. Ms. Lagarde had already said last week that she and the ECB’s rate-setters would take into account the direction of the euro when assessing the inflation outlook and determining the appropriate level of additional stimulus needed for the eurozone economy, an implicit threat to try to weaken the currency.
Investors will be watching for further details on the ECB’s signals and any actions it might take to limit the euro’s strength. They are also likely to scrutinise the minutes of the European Central Bank’s September monetary policy meeting, released on October 8. At that meeting, Ms Lagarde first broached the subject of the euro’s strength.
Investors will be watching for any shift in stance from recent speeches by Fed officials, who have alluded to their latest outlook for the U.S. economy and their views on monetary policy.
Early Wednesday, Beijing time, Philadelphia Federal Reserve President Richard Harker spoke. ‘The policy response in the future has to be fiscal,’ he said. ‘The fiscal stimulus should be at least $1 trillion, which we have already factored into our expectations. If you take into account state and local layoffs, many of which are essential – police, fire, ambulances, teachers – we really need additional fiscal stimulus to get through this period.
“Too small a bailout will lead to a weak recovery and cause unnecessary hardship for households and businesses,” Said Colin Powell, chairman of the Federal Reserve, at an online event organised by the National Association for Business Economics. For now, too much policy support poses less of a risk to the economy than too little. Even if the policy action turns out to be greater than needed, it will not be in vain.”
On Thursday, the Federal Open Market Committee will release minutes of its September 15-16 monetary policy meeting and the European Central Bank’s August policy meeting.
Fundamental positive factors
- According to Worldometers’ real-time world statistics, as of 7:31 p.m. October 7, the cumulative number of confirmed cases of COVID-19 worldwide has exceeded 36 million, reaching 36,006,730 cases, and the cumulative number of deaths has exceeded 1,053,451 cases. The United States has the world’s highest cumulative number of confirmed COVID-19 cases, with more than 7.71 million cases, reaching 7,716,757. The cumulative number of deaths has exceeded 215,000, reaching 215,713.
- Western diplomats at the United Nations on Tuesday criticized China for human rights abuses against The Muslim Uighur minority and its crackdown on Hong Kong’s autonomy. Germany’s ambassador to the UN Hess root that day in the United Nations general assembly general debate of the third committee on behalf of Australia, Canada, France, Japan, New Zealand, Britain, the United States and Germany and other 39 countries issued a joint statement, and refers to the human rights situation of xinjiang and events in Hong Kong in recent development of serious concern: “we urge China to respect human rights, especially the religion and the rights of minority nationalities, especially in xinjiang and Tibet.”
- Taiwan news and liberty times when the Taiwan media reports, Taiwan’s “legislative yuan” (6) through the national legislative proposals today add two discussion, namely “request assistance from the United States against the Chinese communist party”, “Taiwan and the United States’ diplomatic relations'” this resolution, the democratic progressive party (DPP) authorities positive action on these two items.
4.China, Russia, and white supremacists are seen as the “top three threats” to U.S. homeland security, according to the Department of Homeland Security’s first homeland Security threat Assessment report, which was obtained by CBS. With regard to China, the report listed a variety of potential threats posed by the country, saying that it already posed a high risk of cyber espionage to US homeland security and that “Beijing’s cyber attack capability will increase”. The report also said That China was a source of counterfeit medical supplies during the outbreak, and that Beijing has been eyeing shortages in the U.S. medical supply chain as a way to force the government to adopt more pro-China policies. In an interview with CBS news, Acting U.S. Homeland Security Secretary Chad Wolff said China poses a variety of threats, including cyber security, foreign influence, supply chain security, use of the U.S. academic and visa system, and investment. Mr Wolf said he believed China would pose a long-term strategic threat to Americans, our homeland security and the American way of life.
Fundamentals negative factors
1.President Donald Trump said On Tuesday that House Speaker Nancy Pelosi is not ready to negotiate in good faith and that he has rejected Democrats’ economic stimulus proposals. “We offered a very generous $1.6 trillion offer, and she, as always, has no intention of negotiating in good faith,” Mr Trump tweeted. He was referring to House Speaker Nancy Pelosi. Trump said he had directed Senate Majority leader Mitch McConnell to “focus on confirming my outstanding Supreme Court nominee, Amy Coney Barrett.” “I have instructed my representatives to stop negotiating until after the election, and immediately after I am elected, we will pass a major economic stimulus bill focused on hardworking Americans and small businesses,” Mr Trump added on Twitter. Ms Pelosi said Mr Trump was reluctant to fight COVID-19 and the White House was “clearly” in disarray.
- On Tuesday, A White House physician said That President Trump had no symptoms of a novel Coronavirus on his first night out of the hospital. “He spent a quiet first night at home, and today he reported no symptoms,” Dr. Sean Conley wrote in a brief but not specific memo. Mr. Trump’s “vital signs and physical examination remain stable,” Mr. Conley wrote. “Overall, he’s still doing very well.” The upbeat news from White House doctors comes less than a day after the 74-year-old trump was released from Walter Reed National Military Medical Center. After Mr. Trump began experiencing coronavirus symptoms, he flew to the center as a precaution. Trump was hospitalized Friday night, the same day he announced on Twitter that he and first lady Melania Trump had tested positive for the virus.
- Federal Reserve Chairman Colin Powell has renewed his call for more financial aid, saying it is necessary for the recovery to continue. On Tuesday he said: “Even if policy actions turn out to be more than needed, they will not go to waste. “If monetary policy and fiscal policy continue to work together to support the economy until it is clearly out of the woods, then the recovery will be stronger and faster.”
Gold: spot gold day pressure, its immediate trend to maintain downward, there is a strong momentum. Intraday focus on turning point $1,895, currently trading below the turning point with first support at 1864, then 1856. If breaking $1,895, alternative bullish strategies may be considered, with the first target being 1906 and the second target being 1912.
Silver: Spot Silver’s key short-term resistance is $23.71. Even if the possibility of a sustained technical rebound cannot be ruled out, it should be limited. Intraday focus on the turning point at $23.71, which is currently trading below, with first support at 22.83, then 22.61. If it breaks $23.71, alternative bullish strategies can be considered, with the first target at 24.00 and the second target at 24.20.