Spot gold traded at $1, 648.40 an ounce in Asia on Thursday morning. Gold basically maintained a narrow range of pressure trading, after two consecutive trading days of retreat after closing, gold momentum slightly less.
Gold prices remained mildly under pressure in the previous session, with the release of federal reserve minutes having little impact, providing clues about further stimulus measures amid a rapid surge in confirmed cases of novel coronavirus.
Fed officials at two emergency meetings last month became increasingly concerned about how quickly the coronavirus outbreak could damage the us economy and disrupt financial markets, prompting them to take “forceful action”, according to minutes of the fed’s latest meeting.
President Donald trump said on Wednesday that the United States may be reaching the top of a “curve” of a novel coronavirus outbreak and reiterated his hope for a U.S. economic reboot. If the outbreak inflection point appears, the market risk off, gold may be hit hard.
David Meger, director of metals trading at High Ridge Futures, said the money supply would increase as countries and the federal government boosted the economy with helicopter money and stimulus measures, making it a very favorable environment for gold in general.
Analysts at td securities (TDS) say gold is expected to remain above $1,600 an ounce as the fed’s massive quantitative easing program has a historical record of holding down real interest rates. It is too early to tell whether gold has entered a rebound phase, as the risk of a new round of containment from a deflationary shock is still rising, but recent moves have well priced in momentum.
The bank’s analysts continued to point out that with monetary and fiscal stimulus flooding the market and fed interest rates at zero, investors will continue to chase gold as a multi-year bull market peaks and global real interest rates remain in negative territory.
On the daily chart, the dollar index rebounded after a fall, MACD green momentum column unchanged, the KDJ random index moderately higher, indicating that the dollar rebound momentum is still alive, and may continue to rebound momentum.
On the 4-hour chart, the dollar index is under pressure and trading in a tight range, the MACD green momentum column unchanged, the KDJ random index moderately higher, indicating the dollar’s short-term momentum mixed, and then or continue to maintain a tight range for a period of time.
On the daily chart, gold prices rose after a fall, MACD red momentum column slightly narrowed, the KDJ random index slightly more pressure, indicating that gold momentum is about to run out, followed by a period of correction.
On the 4 hour chart, the gold price after the surge slightly pressure, MACD green kinetic energy column unchanged, KDJ random index slightly upward, indicating that gold may continue to moderate short – term fall.
fundamentals Positive factors :
- According to statistics from real-time information and data update website world meters, as of 10:19 Beijing time on April 9, there were over 430,000 confirmed COVID 19 cases in the United States, 434,927 cases, and over 14,000 deaths, reaching 14,788 cases.
- Fed officials at two emergency meetings last month became increasingly concerned that the coronavirus outbreak could quickly damage the U.S. economy and disrupt financial markets, prompting them to take “forceful action,” minutes of Wednesday’s fed meeting showed.
- Democratic senator Bernie Sanders announced Thursday that he is withdrawing from the 2020 U.S. presidential race. That means former Vice President Joe Biden will challenge republican President Donald Trump as the democratic candidate in the November election.
- British prime minister Boris Johnson’s condition is reported to have deteriorated and he has been transferred to the intensive care unit. A spokesman for the prime minister said foreign secretary and first minister Alvaro raab had been asked to act as acting prime minister if necessary.
Fundamental negative factors:
1.The number of daily increases in coronavirus infections in the United States has declined since Friday, according to data from Johns Hopkins university. Since then, the daily increase in cases worldwide has also declined. An influential model tracking the us coronavirus pandemic now predicts fewer deaths and fewer hospital beds than estimated last week.
- Anthony fauci, President of the national institute of allergy and infectious diseases, told fox news on Wednesday that the number of coronavirus-related deaths in the United States is now lower than initially estimated, and noted that the situation should improve after this week. However, he added that efforts to deal with the virus should be strengthened.
- US President Donald trump said on Tuesday that it is time to seriously consider restarting economic activity. We will restart the economy much sooner rather than later. It is happy to restart the economy now, but some places have been hit hard by the outbreak.
- The number of confirmed covid-19 cases rose to 135,586 from 132,547 in Italy on Tuesday, with an increase of 604 to 17,127 deaths. The increase in covid-19 cases was the lowest since March 13.