Gold investments: trump’s comments spur markets! Fed under fire again! The gold top is faint if it appears!

On Wednesday (March 11) in plate, spot gold after overnight collapse trying to stabilizing, current prices hovered near $1660 pass, despite new crown pneumonia outbreak as well as oil prices have plunged a double blow, but investors hope the central Banks and governments will launch a new round of stimulus, these risk spirits pick up the stock market rebound.

Gold plunged as much as nearly $40 the previous day, then continued to fall after hitting a high of $1,680, at one point testing the 1641 level, down nearly 2 percent on the day.

Wall Street had a rollercoaster ride overnight, with the three major indexes rising more than 3 percent at the start of the day, but then turning lower, though they continued to rise late in the day on news that the Trump administration intends to launch a number of measures to stimulate the economy, with the indexes closing up nearly 5 percent.

U.S. President Donald Trump says he will take “significant steps” to ease market concerns by asking congress to pass a fiscal stimulus package that includes measures such as a payroll tax cut.

US President Donald Trump proposed two options for a new coronavirus economic rescue plan at a meeting with Republican senators on Tuesday, either eliminating payroll taxes by the end of the year or making the tax cuts passed at the end of 2017 permanent, according to foreign media reports and people familiar with the matter.

Moreover, Mr. Trump again blasted the fed. “The woefully sluggish fed, led by Colin Powell, is raising interest rates too fast, cutting them too slow, and should bring them down to the level of our competitors. … The fed should be a leader, not a follower!”

The fed is widely expected to cut interest rates for the second time this month at the end of its two-day meeting next week.

Still, the global trend is not encouraging, especially in Europe. A total of 10,149 new cases of pneumonia have been confirmed in Italy, 977 more than the previous day. On that day, there were 168 new death cases, with a total of 631 deaths and 1,004 cures. It was the biggest increase in the number of deaths since the outbreak began on March 21.

It is worth mentioning that according to media reports, the population of Italy is similar to that of hubei province, the “worst-hit” province in China, with about 60 million people. In terms of the outbreak, if the time is set back by 37 days, the daily number of new cases in hubei is highly consistent with the current daily number of new confirmed cases in Italy. Lombardy, the worst-hit region in Italy, has a population of 10.04 million, while wuhan, in hubei province, has 11.08 million. Under the same population density, the number of diagnosis per 10,000 people in Lombardy region is also consistent with the early situation in wuhan.

Fabio Sabatini, a Ph.D. in socio-economic statistics at the University of Rome, has used modeling to find that the outbreak in Italy, if not contained, will be worse than in Hubei.

As for gold, analysts at TD securities point out that the metal remains at a relatively high level, with each decline getting smaller and smaller, and ETF holdings soaring to record highs in recent days, making it harder for speculators to get out of long positions because of the downturn. While liquidity risks remain in the short term, further global interest rate cuts and stimulus measures have provided fundamental support for gold, suggesting that the rally in precious metals is likely to continue.

Mike McGlone, a senior commodities strategist at BI, thinks the gold market will move higher and break through the $1,700 an ounce barrier again but needs to bottom out before that. “Gold will eventually break through the $1,700 / oz resistance level, but that will require a bottom in the market and then a steady rise.”

Technical analysis:

The dollar

On the daily chart, the U.S. index overnight long big outbreak, a lift through the 96, a day up nearly 150 points, up more than 1.5%, is slightly under pressure, trading around 96.20. On the technical side, MACD green kinetic energy column is weakening, RSI index trading below 50, KDJ random index since oversold level rebound, short – term consolidation.

On the 4-hour chart, the dollar index has rebounded strongly after hitting a low of 94.63 and is now back above its 20-day moving average of 95.82, with a focus on whether it can hold its ground. MACD red kinetic energy column steady, RSI index trading near the 50 levels, KDJ random index hit the overbought level, alert to the possibility of a fall.


On the daily chart, gold is trying to rebound after two days of heavy losses, with prices falling more than $30 and now barely above its 20-day moving average. From the technical perspective, the MACD red kinetic energy column continues to weaken, the RSI index hovered around 50, and the KDJ random index approached the overbought level, paying attention to whether it can be stabilized.

On the 4-hour chart, the risk of gold topping has been rising, falling from a high of $1,703 and now approaching the key 50-point moving average support. On the technical side, the MACD green kinetic energy column continues to weaken, and the KDJ random indicator tries to rebound from oversold levels, focusing on the possibility of a short-term correction higher.

Positive fundamentals:

  1. As of 0 am, 242 new cases of pneumonia were confirmed in South Korea, with a total of 7755 cases confirmed and 60 deaths.
  2. As of 18:00 local time, a total of 10149 new cases of pneumonia have been confirmed in Italy, 977 more than the previous day, the head of Italy’s civil protection department and commissioner of the new coronavirus emergency committee said Thursday. On that day, there were 168 new death cases, with a total of 631 deaths and 1,004 cures.

3. Nadine Doris, undersecretary of state for health and social care, confirmed her infection with the new coronavirus Wednesday. She had previously played a leading role in enacting laws in response to six new coronavirus deaths in the UK. In the week of her symptoms, she attended a reception with Boris Johnson, the prime minister, and met hundreds of people in parliament.

4.According to CNN, at least 849 new cases of crown pneumonia have been confirmed in the United States as of the evening of April 10, including 7 more deaths than the previous day, bringing the total to 29. The outbreak has spread to 36 states and Washington, d.c., the nation’s capital, with community transmission in Washington state, California, New York and Florida.

Fundamental negative factors:

  1. U.S. President Donald Trump says he will take “significant steps” to ease market concerns by asking congress to pass a fiscal stimulus package that includes measures such as a payroll tax cut. U.S. stocks rebounded Tuesday, returning from the brink of a confirmed bear market.
  2. General secretary of the communist party of China (CPC) central committee, Chinese President xi jinping and chairman of the central military commission (CMC) paid a visit to wuhan, hubei province Sunday to investigate the prevention and control of the new pneumonia epidemic, xinhua reported on March 10.
  3. After the close of trading on Monday, trump announced at an impromptible White House press conference in the evening eastern time that he would travel to congress on March 10 to discuss measures such as a payroll tax cut to offset the economic impact of the new outbreak.
  4. According to statistics from the national health and physical hygiene commission, from 0:00 to 24:00 on March 9, two new confirmed cases were reported from 30 provinces (autonomous regions and municipalities directly under the central government) other than hubei province and xinjiang production and construction corps, both of which were confirmed cases imported from overseas (1 case in Beijing and 1 case in guangdong).

Leave a Reply

Your email address will not be published. Required fields are marked *