Subsession on Tuesday (March 31), the spot gold clearly extended the previous pattern of narrow shock, trading around $1,615.
Gold edged higher last week after an extension of restrictions in the United States heightened fears of economic damage from a novel coronavirus outbreak and sent investors into safe-haven assets.
In terms of the outbreak, more than 780,000 people have been diagnosed globally, with the United States leading the way with 160,000 confirmed cases and more than 3,000 deaths, according to Johns Hopkins university. More than 20,000 new cases have been confirmed in the United States in the past day.
New York governor Andrew Cuomo called on U.S. health care workers to come to the state’s aid at a news conference Wednesday, warning of a possible future outbreak across the United States.
However, the USNS Comfort, a us navy hospital ship, arrived in New York on Monday (30 March), bringing hope and support to the 8.6 million people in New York City who have become the epicenter of a novel coronavirus outbreak.
‘feeling the U.S. military is here gives me a sense that we’re going to make it,’ mayor Bill DE Blasio told reporters from a pier where the hospital ship docked. It’s an impressive ship and just being in our port is a ray of hope.”
The navy says the comfort will be responsible for treating non-novel coronavirus patients, including those requiring surgery and intensive care, to relieve pressure on local hospitals in New York.
In addition, lawmakers from both parties, economists and other think-tanks have been sketching out the Outlines of another emergency spending package aimed at preventing an economic crisis, according to the Wall Street journal. The package is said to be bigger than the last round, with sources expecting debate to begin in late April.
Initial ideas include extending the duration of a third stimulus package and removing similar aid from the package, sources said. In addition, lawmakers want to supplement the state budget to meet expanding spending needs.
The three major U.S. stock indexes ended March 30 significantly higher, with the dow up nearly 700 points, on the back of three previous rounds of economic stimulus.
Forced selling by investors needing to raise cash is easing, say Morgan Stanley strategists. They say the market is likely to pull back again, but that current levels offer some buying points for investors willing to wait six to 12 months. “Our base case scenario is that the low point of this bear market has arrived for most stocks,” Morgan Stanley strategists wrote in a note.
Some analysts also believe that trump’s decision to abandon his goal of reopening the economy on April 12 helped stabilize investor sentiment. Boris Schlossberg, managing director of BK Asset Management, said in a report that trump’s “complete reversal” shows he is now taking the crisis seriously and is prepared to listen to scientists on how to deal with the epidemic.
As for gold, Ryan McKay, commodities strategist at TD Securities, says the metal has gradually begun to recover from the pressure of previous liquidity problems. “The gold price will go up and the fed’s measures ease the pressure and provide liquidity.” By the end of the year gold will be $1, 800 or even $2, 000 an ounce.
Colin Hamilton, head of commodities research at BMO Capital Markets, said $1,600 an ounce would be a good consolidation area and the next resistance would be in the $1,650 to $1,660 area.
Everett Millman, a bullion specialist at Gainesville Coins, said it was too early to say gold would start the next bull market, with an afternoon target of $1,750 an ounce.
On the daily chart, the dollar index.dxy broke out of last week’s slide and returned to the 99 level on Monday, climbing further to near 99.60 for the day, above its main moving average. On the technical side, the MACD green kinetic energy column expanded slightly, the RSI index held steady around 50, the KDJ random index fell below 50, there is still room for further decline.
On the 4-hour chart, the dollar index after hitting a low of 98.25 began a volatile rebound, has now moved to the 100 moving average 99.13 above, focus on whether to close above this moving average. In technical terms, the MACD red kinetic energy column slightly expanded, RSI index hovering around 50, KDJ random index bounced through the 50 level, there is still room for further short-term rebound.
On the daily chart, gold is still in the high consolidation momentum, currently hovering around $1,615, still above the main moving average. In technical terms, the MACD red kinetic energy column is basically stable, RSI index is stable above the 50 level, KDJ random index hit the overbought level, alert to the possibility of a correction.
On the 4-hour chart, the recent trading range of gold has narrowed significantly, maintaining a high volatility pattern, trading above the 200-year average of 1601 and 100-year average of $1,580, focus on whether to stay above the above average. In technical terms, the MACD green kinetic energy column held steady, KDJ random index hovering below the 50 level, short or further down.
fundamentals Positive factors :
- According to media reports and statistics, the global total number of confirmed COVID 19 cases has exceeded 780,000, with a total of 785,712 confirmed cases and 37,814 lightning strike deaths. The us has more than 160,000 confirmed COVID 19 cases, making it the country with the most confirmed cases in the world.
- U.S. President Donald trump says models of the outbreak show that the peak of the epidemic is not yet in the next two weeks. The next 30 days are challenging times. Mr. Trump noted that one million americans have been tested for the virus. In addition, Mr. Trump said he would send $100 million worth of goods to Italy.
- Italy is currently the country with the highest number of deaths. Italy added 4,050 covid-19 cases on Monday, the slowest growth rate in two weeks, to 101,739, with 812 more deaths, bringing the total to 11,591.
- US President Donald trump extended a 15-day “social distanceadvice” issued two weeks ago to April 30, saying the death toll could peak within two weeks.
Fundamental negative factors:
- Russia’s central bank announced on Monday that it would stop buying gold from April 1, without explaining why.
- All three major U.S. indexes rose in a volatile session on March 30, with the dow up nearly 700 points as large-cap tech and health-care stocks rallied.
- The U.S. house of representatives on Friday approved the largest aid package in U.S. history, a $2.2 trillion plan to help individuals and businesses deal with the economic downturn caused by avirus outbreak called novel coronavirus and provide much-needed medical supplies to hospitals.
- The dow closed up 1,351.62 points, or 6.4%, at 22,552.17, ending its biggest three-day rally since 1931. Over the past three days, the dow has risen more than 21.3%, its best three-day winning streak since October 1931, as a $2 trillion bailout helped pull it out of a technical bear market.