On Tuesday (May 26) in Asian trading, the dollar index was mildly under pressure, now trading near 99.70. Spot gold has risen sharply in the short term from around $1,725 an ounce, breaking through the $1,730 mark and now as high as $1,732.47 an ounce. Safe-haven gold was supported as us-china tensions heightened fears of a slow recovery from the novel coronavirus pandemic. In terms of the global epidemic, the total number of confirmed covid-19 cases worldwide has exceeded 5.58 million, and the total number of confirmed cases in the United States has exceeded 1.7 million, with the death toll approaching 100,000. At a news conference on Monday, the world health organization warned countries to be alert to the second wave.
Analysts say gold bulls are concerned about rising geopolitical tensions that could eventually help gold break above $1,800 an ounce.
The third session of the 13th National People’s Congress (NPC) will deliberate on the draft decision of the NPC on establishing a sound legal system and enforcement mechanism for the Hong Kong special administrative region to safeguard national security, said zhang yesui, spokesman for the session.
“This could lead to new protests in Hong Kong and further deterioration of us-china relations,” said Cartsen Fritsch, analyst at commerzbank.
US President Donald trump responded to Hong Kong’s draft national security law last week by saying that “no one knows yet” the details of China’s plans, but he said: “if that happens, we will respond very strongly.” He didn’t elaborate. Mr Trump also said he would issue a full statement on the proposals “at an appropriate time”.
Us national security adviser Robert O ‘brien said on us media on May 24 that the us would impose sanctions on China if it approved legislation. He also said the legislation could lead to Hong Kong losing its status as a global financial center.
Speaking on NBC’s meet the press on Tuesday, o ‘brien said that if China passed the port security law, “us secretary of state mike pompeo may not be able to recognize that Hong Kong has a high degree of autonomy, and if that happens, the United States will impose sanctions on Hong Kong and the mainland.”
Critics say the threat of us sanctions against Hong Kong risks a repeat of last year’s damaging trade war between China and the us.
The Hong Kong special administrative region (hksar) government issued a statement on Tuesday morning in response to “remarks made by foreign politicians”, saying that every country has the right and responsibility to safeguard its national security and sovereignty, and it is obviously a sign of “double standards” and “hypocrisy” to suggest that China, which has sovereignty over Hong Kong, has no right to legislate for national security in Hong Kong.
Some market watchers said renewed tensions between China and the us were supporting gold prices.
Sean Lusk, co-head of institutional commercial hedging at Walsh Trading, expects investors to continue to buy gold on dips.
“Investors could see history repeating itself as china-centred political tensions reignite fears of another trade war,” said strategists at ING.
Charlie Nedoss, senior market strategist at LaSalle Futures Group in Chicago, said gold prices could rise as soon as panic sets in. “As China becomes more domestically focused and the situation in Hong Kong develops, the dynamics of the gold market are shifting from an inflationary trade to a geopolitical and economic panic trade,” Nedoss said. I expect gold prices to move higher this week.”
Colin Cieszynski, chief market strategist at IA Wealth Management, said it was also important to watch closely how geopolitical tensions affect the overall global recovery and whether they might “force central Banks to do more.”
Adrian Day, chairman and chief executive of Adrian Day Asset Management in Toronto, said gold could fall before rising this week. “As the U.S. economy starts to restart, there will be some initial optimism in equity markets, which could trigger a long overdue pullback in gold prices, but we remain fundamentally very bullish on gold due to the so-called ‘policies’ pursued by major central Banks around the world,” Day explained.
If gold breaks through $1745.50 an ounce resistance, that could push gold to its next bullish target of $1810.00 an ounce, Economies.com wrote on Monday.
Could tensions between China and the United States pose a greater risk to stocks than a novel coronavirus?
Kristina Hooper, chief global market strategist at Invesco, warned that the coronavirus was not the biggest threat to markets. Trade tensions between China and the U.S. could do the most damage to the stock market, she said. U.S. markets are closed Monday for memorial day.
“Because of all the monetary policy support provided by the federal reserve, the impact of the outbreak has been largely isolated and eliminated,” hooper said in an interview with CNBC on Friday. It really decoupled the economy from the stock market.”
Unlike a pandemic, hooper believes a return to a tariff war would hit the market directly.
“As we saw in late 2018 and 2019, tariff wars are very, very problematic,” she said. That creates huge headwinds for the stock market, bigger than for the economy as a whole. It could happen again this time.”
The intensifying dispute between the United States and China over who is responsible for the deadly spread of the virus has unnerved Wall Street.
The foreign company accountability act, passed by the U.S. senate on Wednesday, could bar many Chinese companies from listing on U.S. exchanges or raising money from U.S. investors without complying with Washington’s regulatory and audit standards.
The bill, proposed by senator John Kennedy, republican of Louisiana, would require companies to prove that “they are not owned or controlled by a foreign government”. While the law could apply to any foreign company seeking access to us capital, lawmakers said moves to tighten disclosure requirements were aimed primarily at Chinese companies. The White House declined to comment.
On May 23, the us department of commerce announced that it would add a total of 33 Chinese companies and institutions, including 360 and cloud technology, to its “entity list”. After these enterprises and departments are included in the entity list, the U.S. government may restrict the export, import, or re-export of these entities under the export administration regulations. This means that companies on the list cannot have any business dealings with the United States.
Us presidential national security adviser Brian o ‘brien reportedly told reporters that the us would impose sanctions on China if the hong kong-related legislation was implemented. Zhao lijian, a spokesman for China’s foreign ministry, said that if the us side is determined to harm China’s interests, China will take all necessary measures to resolutely respond and counter.
Globally, novel coronavirus has infected more than 5.58 million people. In the United States, a total of 1.7 million cases have been confirmed and the death toll is approaching 100,000
According to the latest statistics, the cumulative number of confirmed covid-19 cases worldwide has exceeded 5.58 million. There are now more than 200,000 confirmed cases in six countries, including Brazil, Russia, Spain, the UK and Italy. In addition, France, Germany, Turkey, India, Iran and Peru have all reported more than 100,000 confirmed cases. The total number of confirmed cases in the United States has exceeded 1.7 million and the death toll is approaching 100,000.
Worldometers world real-time statistics show that as of 8:47 am Beijing time on May 26, the global total number of confirmed covid-19 cases exceeded 5.58 million, reaching 558,707, and the total number of deaths exceeded 347,000, reaching 347,852. The us has the highest number of confirmed covid-19 cases in the world, with more than 1.7 million cases and 17,06,226 cases. The cumulative number of deaths is close to 100,000, reaching 99,805.
US President Donald trump’s visit to a golf course on May 23 sparked controversy amid a rise in new cases and deaths in the us. Democratic presidential hopeful and former vice President Joe biden took to twitter to criticize him, saying, “nearly 100,000 people have died and tens of millions are out of work. Meanwhile, the President is busy playing golf.
U.S. President Donald trump announced a $19 billion coronavirus food aid program on May 19, local time, to support farmers and ranchers in the United States and “maintain the health of the food supply” during the coronavirus crisis.
On May 17, the former director of the U.S. centers for disease control and prevention, James frieden, warned in an interview that the outbreak in the United States is still not at its worst.
On April 11, local time, US President Donald trump approved Wyoming as a “state of major disaster” for covid-19. For the first time in U.S. history, all 50 states, Washington, d.c. and the four overseas territories of the U.S. virgin islands, northern mariana islands, Guam and Puerto Rico are in a “state of major disaster.”
Major epidemic in overseas countries, Worldometers world real-time statistics, as of Beijing time on May 26, at 8 47 points, Brazil COVID – 19 confirmed 376669 cases, Russia has confirmed 353427 cases of accumulative total of 282480 cases of the patients in Spain, the UK has confirmed 261184 cases, Italy has confirmed 230158 cases, confirmed 182942 cases of France, and Germany has confirmed 180789 cases, Turkey has confirmed 157814 cases, India has confirmed 144950 cases, A total of 137,724 cases have been confirmed in Iran, 123,979 in Peru and 85,711 in Canada.
The White House announced on Monday that the travel ban to Brazil will take effect at 2:59 p.m. Edt on May 26 (11:59 a.m. Wednesday, Beijing time), two days earlier than previously announced. The White House did not explain the change in its statement. But Brazil is now the world’s second largest covid-19 hotspot after the United States.
The world health organization has warned that the epicenter of the pandemic has shifted from Europe and the United States to South America, with Brazil rapidly becoming one of the most affected countries in the world.
On May 25, local time, the world health organization held a regular briefing on covid-19. Michael Ryan, head of the who’s health emergency programme, said there had been no second wave of outbreaks, but it was now in the first. Michael Ryan also stressed that the covid-19 outbreak could suddenly rise at any time, not assuming a sustained decline, but a second peak.
Michael Ryan says it is dangerous to assume there is a “seasonal” nature to the outbreak; The current trend of decline is due to the adoption of strict public health measures. If the virus spreads faster than the prevention speed, there may be a second peak.
“Epidemiological studies show that many people are still susceptible,” maria van kohoff, technical director of who’s health emergencies program, said at the briefing. Whatever the temperature or the month, if humans give the virus a chance, it will come back.