Spot gold continued to trade in a tight range around the 1700 mark on Wednesday as risk sentiment improved as countries began easing restrictions and blockades, with the focus on U.S. ADP jobs data later in the day.
Gold rebounded slightly last day, briefly touching above $1,710 before ending near $1,705, as a massive global stimulus to ease the economic impact of a novel coronavirus pandemic offset a rebound in risk sentiment.
According to statistics from real-time data update website worldometers, as of 10:17 Beijing time on May 6, there were more than 3.72 million confirmed cases of covid-19 worldwide, with a total of 3,726,797 confirmed cases and more than 258,000 deaths, or 258,306 cases.
Among them, the total number of confirmed COVID 19 cases in the United States exceeded 1.23 million, with 1,237,633 cases, and the total number of deaths exceeded 70,000, with 72,271 cases.
A recent dispute between China and the United States over the origin of a novel coronavirus has raised concerns. U.S. President Donald trump on Tuesday also renewed his call for China to make public information about the origin of a novel coronavirus as soon as possible.
However, a medical study on coronavirus by a French medical team reported that a novel coronavirus had spread in France in late December and the case was not related to China.
A study titled “coronavirus has been circulating in France by the end of December 2019” will be published in the medical journal international journal of antimicrobial medicine. The main content of the study was recently published and provides a lot of details.
The 11-page study reported that researchers tested samples of 14 selected cases for coronavirus on 6 April 9. The samples were collected between 2 December 2019 and 16 January 2020 from patients admitted to hospital in Paris, France, with severe pneumonia.
The study released details of those infected with coronavirus in France at the end of December. The report said the man, who was born in Algeria, has lived in France for many years and works as a fishmonger. His most recent trip was to Algeria in August 2019. He was admitted to the emergency room on December 27 last year. CT examination showed a ground-glass shadow in the lower lobe of the bilateral lung, accompanied by hemoptysis, cough, headache, and fever, which had lasted for four days. The patient was admitted to the intensive care unit on the same day and was treated with antibiotics. He was released from intensive care on December 29 due to his improved condition. The patient tested positive for the coronavirus in April.
The study says the identification of the first coronary-disease patient in France has important epidemiological implications and could significantly change perceptions of the spread of the virus in France. Since the cases are not linked to China, the coronavirus has been circulating among French people since late December 2019, the study said. That’s nearly a month before the first official confirmed case was confirmed on Jan. 24, 2020.
The world health organization (who) said Tuesday that reports of COVID 19 cases in France in December last year were “not surprising” and that more early cases could be found. Who is urging other countries to examine records of suspected pneumonia cases in 2019 to better understand the spread of COVID 19.
“This provides a new understanding of all the problems of the outbreak,” who spokesman Christian Lindmeier told a UN news conference in Geneva, referring to the French report.
“This discovery helps to better understand the spread of novel coronavirus,” he said, adding that other early cases may be found after the sample is retested.
As for the gold outlook, Mike McGlone, senior commodities strategist at BI, said he was bullish on gold breaking above its all-time high of $1,900 an ounce. McGlone sees gold and the dollar’s 50-week moving average rising in a pattern similar to 2001-2002, when gold got a boost after the dollar peaked.
TD Securities says investors are still betting long, judging by positions in the gold market, even as the imminent return to work in the us boosts demand for risk.
On the daily chart, the dollar index in three consecutive days of gains after the high consolidation, trading around 99.80, successfully on the key 50 day average level. From the technical point of view, MACD green kinetic energy column weakened, RSI index hovering around 50, KDJ random index approaching 50 level, there is rebound space.
On the four-hour chart, the dollar index is still in a strong rise since 98.77, has broken through the 100 and 50 periods of the average, 200 periods of the average above the pressure. MACD red kinetic energy column began to weaken, KDJ random index hit the overbought level, short – term may be a small correction.
On the daily chart, the gold price in three consecutive days after the high consolidation, trading near the 1700 level, the overall winding around the 20 day average. MACD green kinetic energy column basically stable, KDJ random index hovering around the 50 level, continue to oscillate in the short term.
On the 4-hour chart, gold is still in a volatile pattern, trading around the 100 moving average of $1705, short – term trend is not clear. MACD red kinetic energy column weakened, KDJ random index continues to hover around the 50 level, the short line is still looking for direction.
- According to statistics from real-time information and data update website world meters, as of 10:17 Beijing time on May 6, more than 3.72 million COVID-19 cases have been confirmed globally, of which 3,726,797 have been confirmed and 258,306 have died and more than 258,000 have been confirmed.
- We are in the midst of a recession, but the economy may begin to recover in the second half of the year, federal reserve vice-chairman chuck Clarida said. We are experiencing the most severe contraction in economic activity and a surge in unemployment, which will soar to its highest level since 1940.
- According to an internal document obtained by the New York times, as of June 1, the daily death toll will reach about 3,000, nearly double the current figure of about 1,750. By the end of the month, about 200,000 new cases will be confirmed every day, up from about 25,000 now. In addition, an influential coronavirus model, often cited by the White House, now predicts that novel coronavirus will kill 134,000 people in the United States, nearly double previous estimates.
- In an interview with the Wall Street journal, st. Louis federal reserve bank President James bullard said he is concerned about the potential for a recession if the shutdown lasts too long and the problems of restarting the economy are not handled well.
Fundamental negative factors:
- U.S. Vice President Mike Pence said the White House is discussing disbanding the task force on the new outbreak and that the response could be transferred to FEMA.
- According to the New York Times, US President Donald Trump is considering tax cuts for businesses in his next economic stimulus bill. Mr. Trump said payroll and capital gains taxes should be considered, and liability guarantees and business tax breaks for restaurants and entertainment venues must be considered.
- The euro fell after Germany’s constitutional court ruled that the Bundesbank must stop buying government bonds if it cannot prove it is necessary.
- The U.S. Treasury said Monday it plans to sell nearly $3 trillion in debt in the second quarter of 2020, the highest quarterly issuance on record.