The federal reserve on Thursday unveiled a sweeping $2.3 trillion rescue plan to support local governments and small and medium-sized businesses, in its latest effort to protect the U.S. economy from a new pandemic.
The federal reserve announced $2.3 trillion in measures to support local governments and small and medium-sized businesses, the latest effort to keep the U.S. economy intact as it battles the coronavirus epidemic. The move came after the latest data from the labor department showed the number of americans filing new claims for jobless benefits jumped 6.6 million last week, bringing the number of new claims over the past three weeks to more than 16 million. The combination of these factors has revived risk aversion, giving gold a big boost.
Meanwhile, federal reserve chairman colin Powell said on Thursday that all available tools will continue to be used until the U.S. economy begins to fully recover from the damage caused by the novel coronavirus outbreak.
Spot silver got a big boost from the fed’s stimulus policy, soaring to a high of $15.520 an ounce before closing at $15.407.
In addition to the federal reserve’s new stimulus policy, US President Donald trump has promised to “speed up help” to affected us farmers.
Mr Trump said he had asked the agriculture secretary to “use all the money and authority available” to help us farmers whose finances have deteriorated because of the outbreak. The government plans to unveil an aid package next week, according to people familiar with the matter. Mr Trump tweeted on Thursday night that he wanted to “speed up assistance to our farmers, especially small farmers who are hurting right now”. His tweet did not provide details, but the outbreak relief bill passed by the us congress last month includes $23.5 billion for farmers. So far, it is unclear how all the money will be disbursed.
In his latest tweet, Mr Trump said he had instructed his secretary Sonny to speed up help for American farmers, especially small farmers who are suffering. I expect secretary Sonny to use all the money and authority at his disposal to ensure that our food supply is stable, secure and safe…
U.S. agriculture secretary Sonny Perdue said on a conference call Wednesday that he hopes to deliver aid “as soon as possible.” American farmers, plagued by trade and years of overproduction, have been further hit by the outbreak. In some areas, growers have left fruits and vegetables to rot in the ground as demand has dropped sharply after restaurants closed. Meanwhile, some dairy farmers have had to dump milk as the market for cheese and butter has collapsed. Farmers and farming communities are an important political foundation for Mr. Trump’s re-election this year, with $28 billion in farm subsidies already disbursed during trade conflicts.
If Mr Trump launches another round of stimulus, superimposed by the fed’s “heavy stimulus”, the dollar will be devalued by unprecedented easing, and precious metals such as gold and silver will add to the rally.
On the daily chart, the dollar index extended a pullback, the MACD green momentum column expanded, the KDJ random index turned lower, indicating dollar pullback momentum strengthened, and then may extend the downward momentum.
On the 4-hour chart, the dollar index fell under pressure, MACD green kinetic energy column unchanged, KDJ random index moderate flat, indicating the dollar short – term kinetic energy is insufficient, then or continue to maintain pressure trading pattern.
On the daily chart, silver prices held steady rebound potential, MACD red kinetic energy column held steady, KDJ random index moderately higher, indicating that silver prices will continue to hold steady.
On the 4-hour chart, silver prices maintained a moderate rally, the MACD red kinetic energy column unchanged, the KDJ random index moderately higher, indicating silver to hold on to the upward momentum.
fundamentals Positive factors :
- Worldometers real-time data shows that the number of confirmed cases in the United States has exceeded 460,000, reaching 462,180; The number of deaths rose to 16,444. Globally, the number of confirmed cases rose to 1,591,523, with 95,021 deaths.
- The federal reserve announced measures to provide up to $2.3 trillion in loans, including new loans to small businesses and direct loans to state and local governments.
- The labor department reported 6.66 million new claims for state unemployment benefits in the week ended April 4, compared with expectations of 5 million, up from 6.648 million.
- On Thursday, OPEC + offered to cut output by 15m-20m b/d, but Russia insisted it would only cut output if the us joined the deal.
Fundamental negative factors:
- The number of daily increases in coronavirus infections in the United States has declined since Friday, according to data from Johns Hopkins University. Since then, the daily increase in cases worldwide has also declined. An influential model tracking the us coronavirus pandemic now predicts fewer deaths and fewer hospital beds than estimated last week.
- Anthony Fauci, President of the national institute of allergy and infectious diseases, told fox news on Wednesday that the number of coronavirus-related deaths in the United States is now lower than initially estimated, and noted that the situation should improve after this week. However, he added that efforts to deal with the virus should be strengthened.
- US President Donald Trump said on Tuesday that it is time to seriously consider 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 number of confirmed COVID-19 cases rose to 135,586 from 132,547 in Italy on Tuesday, with an increase of 604 to 17,127 deaths. The increase in COVID-19 cases was the lowest since March 13.