On Thursday (April 23) Asian morning, spot gold quickly rose short, and close to the $1,720 / oz mark; U.S. President Donald trump’s tweets on Wednesday sparked concerns about the Middle East, sending gold prices up nearly $30 on Wednesday. Late Thursday Beijing time, investors will welcome U.S. jobless claims data, which has been closely watched and is expected to cause volatility. In terms of the COVID-19 epidemic, the global total number of confirmed COVID-19 cases has exceeded 2.63 million, the total number of deaths has exceeded 180,000, and the total number of confirmed cases in the United States has exceeded 840,000.
Trump’s tweets raise Middle East tensions gold prices have surged
US President Donald trump said on twitter on Wednesday that he had instructed the us navy to shoot down and destroy all Iranian gunboats if they harassed our ships at sea. That has reignited tensions in the Middle East, creating a safe-haven bid for gold.
Gold’s intraday rise accelerated on Wednesday after Mr Trump’s tweet. Spot gold hit a high above $1,718 an ounce on the new session, $40 above the session low. Spot gold closed Wednesday at $1,714.48 an ounce, up $28.58, or 1.7 percent.
Heightened geopolitical tensions often prompt investors to buy gold as a safe haven.
Spot gold rose sharply in early Asian trading on Thursday, hitting as high as $1,718.90 an ounce.
The navy’s April 15 statement said that while six American warships were training in international waters last week, 11 Iranian ships “passed the bow and stern of the American ship at extremely close range and at extremely high speed.” At one point, the Iranian ship came within 10 yards of the bow of the coast guard cutter maui.
Phil Flynn, senior market analyst at Price Futures Group, said: “the reason for the recent surge in gold is that trump tweeted a message about Iran. Apparently, in recent days, Iran has been playing a cat-and-mouse game with American ships. Trump basically gave the order to shoot at random.”
Charlie Nedoss, senior market strategist at LaSalle Futures Group, also commented that trump’s tweet boosted gold, which had already been tested for support on Tuesday. In addition, Nedoss points out that a weaker dollar tends to help gold because they have an inverse relationship.
He said it was difficult to gauge the likelihood that Mr. Trump’s tweets would spark a military confrontation. Yet the gold market has taken note.
Other factors helping gold include a stronger stock market, a weaker dollar and the metal’s ability to rebound from support after Tuesday’s drop, analysts said.
Gold fell to a near two-week low of $1,659.68 an ounce on Tuesday as widespread selling sparked a rush for cash and prompted investors to sell precious metals to cover losses.
“Technically, gold bulls have an overall short-term technical advantage in the rising trend of daily, weekly and monthly prices,” Jim Wyckoff, senior analyst at Kitco Metals, said in a report.
An article on Economies.com, a leading financial website, said the rebound in gold prices above the $1700.00 / oz mark supported expectations that gold would continue its bullish trend within days and in the short term. Gold is expected to rise further, with the next major target at $1,747.43 an ounce. Gold continues to be bullish on the condition that gold remains above $1,678.45 an ounce.
The novel coronavirus pandemic forced many countries to extend their lockouts to contain its spread and unleashed an unprecedented amount of fiscal and monetary support for their economies. Gold tends to benefit from broad central bank stimulus because it is often seen as a hedge against inflation and currency depreciation.
The house of representatives will pass congress’s latest coronavirus rescue bill on Thursday, paving the way for nearly $500 billion more in economic aid during a novel coronavirus pandemic, house speaker Nancy pelosi said on Wednesday.
“It’s the perfect storm for gold,” said Michael Matousek, chief trader at US Global Investors. With all this stimulus going on, a steady stream of buyers is buying gold. “
Central Banks and governments are flooding financial markets with liquidity, which will push up inflationary pressures and gold prices, said Chantelle Schieven, head of research at Murenbeeld & Co. The research firm updated its forecast for this year, saying gold could breach $1,800 an ounce by the fourth quarter.
Schieven said in the long term, gold could top $2,000 an ounce by the end of next year.
Us jobless claims data hits
At 20:30 Beijing time on Thursday, investors will be greeted by U.S. jobless claims data. Initial U.S. claims for jobless benefits are expected to be 4.5 million in the week ended April 18, according to a respected media survey.
New claims for state unemployment benefits rose to 5.245 million in the week ended April 11, the third straight week above 5 million, labor department data showed on Thursday.
It was also the fourth week in a row that weekly claims for jobless benefits in the United States rose above 1 million, bringing the total to nearly 22 million.
Analysts said gold could get a boost if the latest U.S. preliminary data on Thursday came in worse than expected, which could spark safe-haven buying.
Initial claims are expected to remain in the millions for weeks as the effects of the coronavirus filter through the economy.
“Claims will be the most timely hard data to assess the extent of the recession and capture the start of the recovery,” Goldman sachs analysts said in a recent note to clients.
Diane Swonk, chief economist at Grant Thornton in Thornton, Texas, said the pace of the rise in the unemployment rate has slowed, but the hit to the labor market has been significant.
Job losses in the United States are likely to rise further as the new outbreak shuts down businesses, and analysts expect the downward trend to continue into the third quarter.
On Friday, U.S. President Donald trump announced a three-phase restarting of economic activity, but it remains to be seen how much this will improve the job market while COVID 19 remains a severe epidemic.
New outbreak update: the number of global infections has exceeded 2.63 million. The United States has confirmed more than 840,000 cases
According to the latest statistics, the global total number of confirmed COVID 19 cases has exceeded 2.63 million and the total number of deaths has exceeded 180,000. At present, the number of confirmed cases has exceeded 100,000 in six countries in the world, among which the United States is still the country with the largest number of confirmed cases in the world, with a total of more than 840,000 cases.
Worldometers world real-time statistics show that as of 9:19 PM Beijing time on April 23, the global covid-19 cumulative confirmed cases of 2.63 million, to 2637673 cases, cumulative deaths of more than 180,000, to 184,217 cases. The United States had the world’s largest number of cumulative confirmed COVID 19 cases, with 848,994 cases and 47,676 deaths, exceeding 840,000.
At least 263,292 cases, including 19,413 deaths, have been confirmed in New York state, the worst-hit state in the United States. New Jersey has at least 95,418 confirmed cases, including 5,129 deaths. More than 30,000 cases were diagnosed in Massachusetts, Pennsylvania, California, Michigan and Illinois.
The Wall Street journal reported on April 22 that at least 10,783 people have died from COVID 19 in nursing homes and other long-term care facilities, according to data from at least 35 states.
US President Donald trump announced at a White House briefing on the outbreak on April 22 that he had signed an executive order suspending immigration.
The White House says the immigration ban will last for 60 days and the administration will continue to monitor the labor market to determine whether it needs to be amended or extended.
Donald trump announced at a press conference on Tuesday that he would temporarily ban legal immigrants from entering the United States for at least two months, in an effort to combat a surge in unemployment caused by the outbreak of a new flu.
According to CNN on April 22, two deaths from novel coronavirus infection in northern Santa Clara county, California, on February 6 and 17 have been found to be the earliest in the United States. Previously, the first death from novel coronavirus infection in the United States was believed to be a death in Washington state on Feb. 29.
The head of the centers for disease control and prevention, Robert Redfield, said on April 21 that the start of winter in the United States could usher in a second, more severe outbreak, with the overlap of the flu season and the new pandemic threatening “unimaginable” strains on the health care system. Redfield said governments at all levels should use the months to prepare, including improving their detection and monitoring capabilities.
Other major overseas countries, Spain COVID – 19 accumulative total of 208389 cases of the patients, Italy has confirmed 187327 cases, confirmed 159877 cases of France, and Germany has confirmed 150062 cases, the diagnosis of 133495 cases, Turkey has confirmed 98674 cases, Iran has confirmed 85996 cases, Russia has confirmed 57999 cases, Brazil has confirmed 45757 cases, Belgium has confirmed 41889 cases, Canada has confirmed 40119 cases, the Netherlands confirmed 34842 cases over the Swiss confirmed 28268 cases.
In China, from 0:00 to 24:00 on April 22, 31 provinces (autonomous regions and municipalities directly under the central government) and xinjiang production and construction corps reported 10 new confirmed cases, of which 6 were imported from abroad and 4 were from China (3 from heilongjiang province and 1 from guangdong province), according to the latest announcement of the national health commission on Thursday. No new deaths; No new suspected cases were reported.
As of 24:00 on April 22, according to reports from 31 provinces (autonomous regions, municipalities directly under the central government) and xinjiang production and construction corps, there were 959 confirmed cases (63 of them severe), a total of 77207 cured and discharged cases, a total of 4632 dead cases, a total of 82798 confirmed cases and 20 suspected cases. A total of 728,049 close contacts were traced, and 8,429 close contacts were still under medical observation.
On April 22, local time, the director-general of the world health organization (WHO) tan desai said that the epidemic situation in most western European countries has been stable or has a trend of decline. Although there are few confirmed cases in Africa, central and South America, eastern Europe and other regions, the epidemic situation is on the rise, and most countries are still in the early stage of COVID 19 epidemic. Novel coronavirus will coexist with humans for a long time, and we still have a long way to go.
“There is no doubt that we still have a long way to go. This virus will be with us for a long time.”
Despite the success of social alienation efforts in many countries to slow the spread of the coronavirus, the virus remains “extremely dangerous,” Dr. Tandesay said. He said current data showed that “the majority of the world’s population is still vulnerable,” meaning the outbreak could easily “flare up again.”
Tan called on the United States on Monday to reconsider its decision to suspend funding to the organization and to continue to support the work of the who. Tan said he would focus on overturning the who in the future, but that the immediate focus was on saving lives during the outbreak.