Gold investments: what’s backing them? Short continued counterattack impale 1650! Trump brewing another stimulus!

Spot gold traded at $1, 649.10 an ounce in Asia on Wednesday morning. After surging to a high of $1,672.00 an ounce in the previous session, gold has retreated all the way and is now trading in the $1,649 area, still on a downward trend.

The dollar gained ground on the day as investors returned to safe-haven assets and shed some of the riskier currencies. Hopes that the crisis in Europe and New York’s novel coronavirus would ease helped risk currencies rise. On the day, gold surged to a near one-month high and then retreated as signs of a slowdown in the number of confirmed cases in major affected areas lifted sentiment, making the metal less attractive as a safe haven.

Bart Melek, head of the commodity strategy at TD Securities in Toronto, said: “what we’re seeing in the stock market is more of stabilization as the Numbers are peaking in some U.S. jurisdictions. What all this really tells us is that the epidemic may be over, but the world is by no means a well-oiled place, nor one to be risked; Expectations of more stimulus and lower interest rates in the longer term will continue to support gold.

Gold futures fell 0.6 percent to settle at $1,683.70 an ounce, continuing to trade above spot gold prices in London, suggesting concerns that refinery closures and logistics restrictions could prevent bullion shipments to the United States from meeting contract requirements.

Credit suisse remains bullish on gold, predicting it will break above $1,705 in due course and then encounter some resistance at $1,796, but then set a new high, with only a break below the key support level of $1,453/46 to discredit the long-term bullish view. For now, extreme long positions in gold are beginning to unwind, continuing to support a bullish stance.

“It’s time to start thinking very seriously about 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 dollar is the strongest and the euro is very weak.”

At the same time, trump noted that he had held talks with Russian President vladimir putin and the Saudi crown prince about the oil market, believed the oil market and the economy would be resolved, and was discussing the next phase of stimulus measures.

Technical analysis:

The dollar

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 maintain the momentum of the rebound.

On the 4-hour chart, the dollar index is under pressure and trading in a narrow range, the MACD green momentum column is unchanged, the KDJ random index is mildly flat, indicating that the dollar short – term kinetic energy is insufficient, and then or for a period of time to maintain a narrow range of consolidation trading.

gold

On the daily chart, gold held the trend of the recent rebound, MACD red momentum column unchanged, KDJ random index slightly more pressure, indicating gold momentum respite, but no impact on the overall rebound momentum.

On the 4-hour chart, the gold price rose after a slight fall, MACD red kinetic energy column unchanged, KDJ random index significantly lower, indicating gold short – term downward momentum strengthening, may further fall.

fundamentals Positive factors :

  1. According to statistics from real-time information and data update website world meters, as of 10:22 Beijing time on April 8, the global cumulative number of confirmed covid-19 cases has exceeded 1.43 million, with a total of 1,431,689 confirmed cases and more than 80,000 deaths, totaling 82,074. Five of the countries with more than 100,000 cases were the United States, Spain, Italy, Germany, and France. More than 400,000 cases have been confirmed in the United States, with more than 12,000 deaths.
  2. 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.
  1. US President Donald trump said he did not like India’s decision on hydroxychloroquine and may retaliate against India’s decision on drugs.

Fundamental negative factors:

  1. US President Donald trump’s latest remarks during the day: ‘we are now very seriously considering 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.
  2. At the same time, trump pointed out that he had held talks with Russian President vladimir putin and the Saudi crown prince on the oil market, believed that the oil market and the economy would be solved, and was discussing the next phase of stimulus measures.
  3. Italy reported on Tuesday that the number of confirmed covid-19 cases rose from 132,547 to 135,586, with an increase of 604 to 17,127 deaths. The increase in covid-19 cases was the lowest since March 13.
  4. The European Commission is said to be considering relaxing the rules on state aid, considering a proposal that would allow eu member states to help companies with capital injections.

Leave a Reply

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