In the Asian session on Wednesday (September 16), spot gold continued to rise after a volatile decline, and is now near $1,958 an ounce, up 0.22% on the day. Silver, meanwhile, was up 0.42 percent on the day at $27.21 an ounce. Spot gold closed at $1955.20 an ounce, up $15.51, or 0.80 percent, after touching as low as $1936.79 and as high as $1962.20.
Bridgewater founder Dario Said in an interview with foreign media on Tuesday that the dollar’s status as a reserve currency is under real threat because of the numerous measures taken by the United States to stimulate its economy during the epidemic. While stocks and gold have benefited from trillions of dollars of fiscal spending and monetary injections, these measures are weakening the dollar and further testing the limits of the U.S. government’s stimulus policies. “There is too much debt and debt monetisation being generated in the US,” says Mr Dario.
The Bloomberg spot dollar index has fallen about 10 per cent from its peak in late March, thanks to investors’ investment choices during the outbreak and the rescue plans of the Federal Reserve and government officials. All of the world’s major developed currencies have appreciated against the dollar, as have precious metals such as gold, silver and platinum.
Mr Dario said in July that investors should favour equities and gold over bonds and cash because of negative returns and the prospect of more money being printed by the Fed. Bridgewater has been investing in gold and inflation-linked bonds in its All Weather portfolio, diversifying into countries and looking for more stocks with stable cash flows.
The World Trade Organisation has ruled that tariffs imposed by the Trump administration on more than $200bn worth of Chinese goods are illegal, according to media reports including the Associated Press. The United States violated global rules by imposing tariffs on Chinese goods in 2018, a panel of three WTO trade experts said on Tuesday. The US has announced tariffs on $400bn of Chinese exports. “The United States has failed to meet its burden of proof to justify these measures for the time being,” the panel said in its report.
The United States has blacklisted a Chinese property development company that is building ports, airports and resorts in Cambodia. Washington says the company is building on land seized from local residents and says it could turn it into a military base. In a statement announcing the blacklisting, the U.S. Treasury said the company was a Chinese state-owned entity and that it had been wrongly registered as Cambodian-owned in order to obtain land for the project. The United States called the company-funded projects “forcing Cambodians out of their homes, damaging the environment and damaging the livelihoods of local communities.” Treasury Secretary Steven Mnuchin said in a statement: “The United States is committed to using its full authority to combat these practices wherever they occur.”
Investors are keeping a close eye on the Federal Reserve’s monetary policy meeting this week in anticipation of a dovish tone from Fed Chairman Colin Powell. There are few signs that markets are holding out too much hope for the fed meeting, meaning the best investors can hope for is a ‘stability’ message from Fed Chairman Colin Powell. A bold move could upset the market at a time when tech stocks are stabilizing and volatility spreads suggest some easing of fears about potential electoral turmoil. Interest rate futures suggest the Fed is seen as one of the world’s least likely central Banks to cut rates further. Financial conditions have stabilized and returned to positive territory, with 10-year Treasury yields steady at levels last seen in March. Anything that changes the latter could lead to a rally in the U.S. bond and equity volatility indexes, something many investors may have been tempted to avoid over the past few weeks.
Spot gold intraday key turning point is 1961, RSI technical index bearish, as long as 1961.00 resistance is not broken, the risk of falling below 1946.00 is very high.
Spot silver yesterday did not defend 27.1 turning point, RSI indicators are bearish, and there is further room for decline. If the day continues below 27.3, expect to see 26.3.
Fundamentals positive factors:
1.The Indian military has activated its entire logistics network, using livestock and large transport aircraft to deliver supplies to Indian soldiers along the China-India border to survive the coming winter, according to a new Reuters report. Indian officials say large quantities of ammunition, equipment, fuel, winter supplies and food have been brought into Ladakh in recent months.
2.According to world real-time statistics, as of 07:39 Beijing time on September 16, the cumulative number of confirmed cases of COVID-19 worldwide has exceeded 29.71 million, reaching 29,713,832, and the cumulative number of deaths has exceeded 938,361. The United States has the highest cumulative number of confirmed COVID-19 cases in the world, with more than 6.78 million cases to 6,787,121. The cumulative number of deaths has exceeded 200,000, reaching 200,158.
- On Tuesday, the United States announced it had blacklisted a Chinese real estate development company that was building ports, airports and resorts in Cambodia. Washington says the company is building on land seized from local residents and says it could turn it into a military base. In a statement announcing the blacklisting, the U.S. Treasury said the company was a Chinese state-owned entity and that it had been wrongly registered as Cambodian-owned in order to obtain land for the project. The United States called the company-funded projects “forcing Cambodians out of their homes, damaging the environment and damaging the livelihoods of local communities.” Treasury Secretary Steven Mnuchin said in a statement: “The United States is committed to using its full authority to combat these practices wherever they occur.”
- A growing international recognition of China’s selfishness and its attempts to dominate the world has led more countries to take Washington’s position than Beijing’s, the top U.S. diplomat said Tuesday. In recent months, as relations between the two superpowers have imploded, U.S. Secretary of State Mike Pompeo has stepped up rhetorical attacks on Chinese governance, the state-dominated economic system, espionage and the response to the epidemic. “The world has woken up, and I think the tide has turned,” Mr Pompeo told the Atlantic Council, an international affairs think-tank in Washington. “I think this is a powerful shift in the world’s perception of the threat from the Chinese Communist Party.”
Fundamentals negative factors:
1.The World Trade Organization (WTO) has ruled that tariffs imposed by the Trump administration on more than $200 billion worth of Chinese goods are illegal, according to new reports from the Associated Press and other media. The World Trade Organization has weakened U.S. President Donald Trump’s main argument for waging a trade war against China, saying U.S. tariffs on Chinese goods violate international rules. The United States violated global rules by imposing tariffs on Chinese goods in 2018, a panel of three WTO trade experts said on Tuesday. The US has announced tariffs on $400bn of Chinese exports. “The United States has failed to meet its burden of proof to justify these measures for the time being,” the panel said in its report.
- President Trump said on Tuesday that he had heard Oracle was very close to a deal for TikTok for ByteDance, despite reports that the Chinese company was seeking to retain a majority stake in the popular short video app. According to people familiar with the matter, according to a proposal has been submitted to the us government, the beat byte has decided to keep the TikTok’s headquarters in the United States, it is still the controlling shareholder of TikTok, the oracle will hold a few TikTok equities, the other American investors may include Microsoft has bid for the world’s largest retailer wal-mart has or will hold a minority stake, but the final details also may change. The proposal is aimed at preventing Mr. Trump from blocking the popular social video app. Independent third parties will become independent directors of TikTok, the people added. Bytedance will continue to retain control of TikTok and the core algorithm.
- The US Food and Drug Administration (FDA) is planning a “very important collaboration” with British drug company AstraZeneca (AstraZeneca), FDA commissioner Stephen Hahn said On Monday. The trial of Astrazeneca’s coVID-19 vaccine in the US is still on hold, Hahn confirmed in an interview on Monday, Reuters reported Tuesday. “To protect the American people, we will have significant collaboration with the company to determine whether there are serious security concerns,” he said. This comes after US President Donald Trump said in an interview with Fox that the COVID-19 vaccine will be available in the US within weeks. He reiterated that this was not for “political reasons”, but rather that a vaccine should be developed as soon as possible. Mr. Trump had earlier repeatedly insisted that the COVID-19 vaccine in the US could be on the market by the end of the year and suggested it would be available before the November 3 election.