Latest news from China and the US! Us sends stealth bombers to counter the Chinese threat! Gold bursts through 1940! Does riot market fear to continue?

As the U.S. dollar continued to come under pressure as talks on a new bailout package failed to break the deadlock, spot gold rebounded from an oversold slump and began to stabilize after a shock sell-off, with gold rising above $1940 and silver up 2% in Asian trading on Thursday. For the rest of the session, the market’s focus on U.S. preliminary data is likely to give the most timely indication of labor market performance. In addition, we still need to be alert to the sudden news of the situation between China and the United States. According to the latest news from The Times of Britain, the United States has sent stealth bombers to counter the Chinese threat.

Thousands of miles apart! America’s new stimulus programme remains stalled

For now, investors are still waiting for news of talks on a new U.S. stimulus package. Negotiations on the next federal aid bill are deadlocked for a fifth day, with neither party ready to resume negotiations. The bill aims to help tens of millions of Americans who are suffering from the coronavirus pandemic.

Senate Republican Leader Mitch McConnell said late Tuesday that no progress had been made in the economic-stimulus talks. He told reporters there has been no dialogue between the White House and Democrats. “Another day has passed and the two sides are at an impasse.”

Us House Speaker Nancy Pelosi says she has rejected Treasury Secretary Steven Mnuchin’s “offer” to restart talks on a new stimulus package because the White House is demanding a smaller stimulus and won’t budge on the issue.

The two sides are “miles apart” and there is a “gulf”, Ms Pelosi said.

“We have made it clear to the administration that if they are willing to increase by $1 trillion, we are willing to reduce by $1 trillion,” Pelosi said in a joint statement Wednesday with Senate Democratic leader Chuck Schumer. When they start taking the process seriously, we are willing to resume negotiations.”

Mr. Mnuchin, the Treasury secretary, has called Ms. Pelosi, but nothing seems to have happened. Mr. Mnuchin earlier said Congress could pass a stimulus package of “a little over $1 trillion” before discussing additional stimulus measures that would be needed later. “We can talk later this year or in January,” he said. “We don’t have to do everything at once.”

Mr. Mnuchin did not announce any plans for follow-up talks, saying only that “I can’t speculate” about the future of the deal. “If Democrats are willing to be reasonable, there will be a compromise,” Mr. Mnuchin said. “If the Democrats want to focus on politics and not do anything that is successful for the President, there will be no agreement.”

“Of course, this puts pressure on the U.S. growth outlook,” said Karl Schamotta, chief market strategist at Cambridge Global Payments. The market has had to scale back expectations about the size of the final stimulus package.”

Of political debate about the economic stimulus package that the dollar’s recent rally pause, the dollar index trend higher, on Wednesday, Thursday’s intraday further pressure on lower, currently trading around 93.25.

ShaunOsborne, chief currency strategist at Bank of Nova Scotia, also said: “The fundamentals supporting the DOLLAR over the past two years are receding and investors will seek returns in other non-DOLLAR markets in the coming months. “The dollar will remain weak in the medium term, but it will not collapse. There is only the possibility of a moderate correction in the short term.”

Latest news from China and the US! Us sends stealth bombers to counter Chinese threat

The United States has sent stealth bombers to counter the Threat from China, The Times of London reported.

Three US B-2 stealth bombers arrived at the Diego Garcia Island in the Indian Ocean on the eve of a live-fire drill by the Chinese navy in northern Taiwan.

It is the first time the US has sent nuclear-capable strategic bombers to the remote island since 2016, in a sign of growing concern over China’s intentions towards Taiwan.

The report said the bomber flew over the Pacific from Whiteman Air Force Base in Missouri and landed at Diego Garcia, a Territory in the British Indian Ocean. With its advanced stealth technology, the B-2 can penetrate enemy territory without attracting the attention of anti-aircraft radar.

Two Chinese planes briefly flew over the “median line” in the Taiwan Strait on Monday morning, Taiwanese media reported. While the planes were expressing China’s displeasure with a visit to Taiwan by U.S. Health Secretary Alex Azar, similar missions have led to at least 20 incurs into Taiwan’s airspace and waters this year.

The Trump administration has stressed its support for Taiwan as relations with Beijing have soured over issues such as human rights and trade.

This week, U.S. Health Secretary Alex Azar became the highest-ranking U.S. official to visit Taiwan in 40 years, a trip that was condemned by China and threatened unspecified countermeasures.

Mr. Azar wrapped up a three-day visit On Wednesday, during which he met with Taiwan leader Tsai Ing-wen. Mr Azar said his talks with Taiwanese officials involved a “bilateral trade arrangement”. “The purpose of my visit is to highlight the deep partnership and friendship between Taiwan and the Us,” Mr Azar said. He did not elaborate on the proposed trade arrangement.

The gold crash is in my mind. What’s next?

After two days of wild swings, gold is now trying to find its footing, edging above $1940 in Asian trading Thursday, up $30 from its session low.

Gold tumbled more than $110 on Tuesday, its biggest one-day drop since April 2013. Silver, meanwhile, plunged 15% on Tuesday, its biggest drop since October 2008.

“This fall is a healthy correction, it’s bringing more people into the market, so prices will bounce back again,” said Phillip Streible, chief market strategist at Blue Line Futures. “We’ll see new all-time highs by the end of the year, with gold at $2,500 an ounce and silver at $35.”

“The fundamentals underpinning gold have not changed,” he said. “The Fed is going to be dovish for a long time. They have said they will allow inflation to exceed their target.”

Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia, doesn’t see gold’s pullback as a reversal of its trend. “The gold market is in an unprecedented environment and this significant correction suggests that gold volatility will continue.”

“Technically and fundamentally, it’s not a surprise for gold to fall below $1,890 and silver to around $22 an ounce before bouncing back to new highs,” said Bart Melek, head of global strategy at TD Securities in Toronto. The best that can be said for now is that investors are getting a second chance at gold and silver, which could hit new highs for the rest of this year or next. The correction is a second chance for investors to get in the car.”

In fact, columnist David Fickling says the rally of the past year is a long overdue correction to the depressed levels of the past few years. Fickling thinks that, just as the gold market has not fallen below the $1,000 an ounce mark since 2009, it will not return to below $1,700 this time.

Joe Foster, portfolio manager of the VanEck International Investors Gold Fund in New York, said the fall was just a correction and that his long-term bullish trend had not changed, with his target of $3,400 an ounce unchanged.

Leave a Reply

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