In Asian trading on Friday, spot gold was trading around $1940, while silver hovered around $27, as it tried to hold its ground after two days of losses.
The Dow Jones industrial Average briefly lost more than 1,000 points and the three major indexes gave up nearly 7 days of gains yesterday as the US economy suffered mixed data and the US stock market suffered a panic plunge.
The number of U.S. workers filing new claims for state unemployment benefits fell to 881,000 in the week ended August 29, from a previous reading of 1.006 million, the fifth straight weekly decline and the lowest since April 4, labor Department data showed. Meanwhile, the U.S. trade deficit widened to $63.6 billion in July from a pre-revision $53.5 billion, not far from market expectations. Of this, exports amounted to us $168.1 billion and imports to US $231.7 billion, both rising.
President Donald Trump blamed “fake media” for the stock market rout on twitter, saying that “every time they publish a poll, the stock market goes down”, a day after declaring that “the stock market would crash if Biden were President”.
The plunge in Wall Street weighed on gold, which at one point approached $1,920. Traders sold gold to meet margin calls in the stock market. Some analysts say gold is traded as a liquid asset in the stock market.
For the rest of the day, the focus will be on the U.S. non-farm payrolls report. The median forecast for U.S. nonfarm payrolls fell to 1.35 million from 1.39 million.
, chief international economist at ing, said James Knightley in the non-farm jobs is not as optimistic, market expectations of new is expected in 900000, which means that unemployment will rise, especially the federal government, the next round of unemployment benefits is unclear, a lot of people will be more actively to find work.
Charlie Nedoss, senior market strategist at LaSalle Futures Group in New York, said if the August nonfarm payrolls data do not perform well, it is definitely good news for gold, which means the Fed will have to water the market again. He said he is a short-term bull on gold because the Fed is clearly more willing to support employment than inflation.
On top of that, the situation in China and India is also on investors’ minds right now, with renewed border clashes between the two sides.
India has ordered greater scrutiny of visa applications from a Chinese non-profit group and listed it as an entity of concern in a broader security operation, according to people familiar with the matter, Reuters reported. The group is headed by a senior official in the ruling Communist Party. Being classified as an entity of concern means that representatives of the agency or groups that support the agency will face a security review process before a visa is issued.
In addition, Indian Foreign Minister Subrahmanyam Jaishankar said it was urgent and important for India and China to resolve the confrontation on the Line of Actual Control and saw the need for a diplomatic solution.
He revealed that when he attends the SCO Foreign Ministers’ meeting in Moscow on October 10, he may meet with Chinese State Councilor and Foreign Minister Wang Yi. The two foreign ministers will hold their first talks after the outbreak of border conflicts between the two countries. But he did not say much more.
According to Hindustan Times, Su made the remarks at an online event organized by the Observer Research Foundation (ORF), an Indian think tank. At the event, India’s relations with China and the impasse were prominent issues.
In response to another question about whether China was blocking India, Mr Su said now was not the “easiest time” in bilateral relations, but added that “reconciliation between the two countries is the most urgent and vital, not just for the two countries themselves”.
He added that he had not downplayed the border challenge and that “I am fully convinced that a solution to the situation must be found through diplomatic means.”
On the daily chart, the DOLLAR index.DXY rose slightly after retreating from a high yesterday and is now trading in a narrow range around 92.80. The daily chart MACD red momentum column continues to expand, with the KDJ random index trying to break above the 50 level to indicate a strengthening of short-term bullish momentum, or further shock to the upside.
On the four-hour chart, the dollar index has begun to slow from its lows of more than two years and is now wrapped around its 100-period average. The MACD red momentum column is gradually weakening, with the KDJ stochastic trying to break below the 50 level below, indicating a slowdown in dollar bullish momentum and further short-term pressure.
On daily charts, gold is trading around $1940 as it tries to hold its ground after two straight days of losses. The daily chart MACD green momentum column was basically stable, while KDJ random index continued to hover around the 50 level, indicating solid bearish momentum for gold and the risk of further volatility.
The 4-hour chart shows gold trying to rally after hitting a low of $1,921 to see if it becomes a short-term low. MACD green momentum column gradually weakened, KDJ random index trying to rebound from the oversold level, indicating gold bearish momentum to slow, short term or further volatile upside.
On daily charts, silver is hovering near $26.85 after three straight days of losses. The daily MACD green momentum column turned expansionary, with the KDJ random index falling below the 50 level, indicating that bearish momentum is strengthening for silver and further price volatility.
On the 4-hour chart, silver’s downward momentum stops at 26.36. Watch to see if this support can be sustained. MACD green momentum column weakened slightly, KDJ random index tried to rebound from the oversold level, indicating silver bearish momentum weakened, short term or further shocks to the upside.
Fundamentals positive factors:
1.New Delhi: India is prepared to continue to use its armed forces to ensure national security, while scrutinizing China’s military reforms and activities to shape its future strategy, Chief of Defense Staff Bipin Rawat said on Thursday. It comes amid a worsening stand-off between Indian and Chinese forces along the disputed Himalayan border.
- The United States announced sanctions on 11 foreign companies on Thursday for allegedly helping Iran export oil and petrochemical products in violation of U.S. sanctions.
- U.S. Attorney General Bob Barr says there is a potential for fraud in postal ballots in U.S. elections. China poses a greater threat than Russia or Iran when it comes to foreign interference in US elections.
4, the U.S. state department issued a statement on Wednesday, said it would activity restrictions for Chinese diplomats in the work, including the Chinese ambassador to the United States, a senior diplomat and meet with local officials to visit the United States university approved by the us, China’s ambassador to the United States embassy or consulate outside the embassy for more than 50 people cultural activities must be approved by the United States.
Fundamentals negative factors:
- The number of U.S. workers filing new claims for state unemployment benefits fell to 881,000 in the week ended August 29, the Labor Department said on Thursday, down from a previous reading of 1.06,000. It was the fifth straight weekly decline and the lowest since April 4.
2. The Institute for Supply Management’s non-manufacturing index, released on Thursday, came in at 56.9 in August, down from 58.1 but still in an expanding range, similar to the same month for U.S. manufacturing.
3. The three major U.S. stock indexes surged Wednesday, with the Nasdaq breaking through the round-number 12000 and the Dow back above 29,000.
4. The Institute for Supply Management said on Tuesday its index of U.S. manufacturing activity rose to 56 in August from 54.2 in July. It was the highest level since January 2019, and marked three straight months of growth.