Long head retaliatory counterattack! Gold and silver T+D both shot up! We may be at the same inflection point we were in November 2008!

Spot gold was trading at $1,573.00 an ounce in Asian trading on Tuesday. On the day, gold further held the trend of volatile gains, now as high as $1584.40 an ounce, since the day’s low gained more than $30, the current bullish momentum is still very strong.

Gold T + D on the Shanghai gold exchange rose 5.60 percent to 357.72 yuan per gram in Asian session. This trading day opening times 340.11 yuan/g, the last trading day closed at 338.75 yuan/g. Silver T+D also rose 11.36 percent to 3,461 yuan/kg, the trading day’s opening times of 3,114 yuan/kg, the last trading day’s close of 3,108 yuan/kg.

Gold T + D on the Shanghai gold exchange closed up 2.19 yuan, or 0.65%, at 338.75 yuan per gram on Monday, with the highest bid at 340.99 yuan per gram and the lowest bid at 336.75 yuan per gram. Silver T+D closed up 81 yuan, or 2.68%, at 3,108.00 yuan per kg, with the highest bid at 3,142 yuan per kg and the lowest at 3,055 yuan per kg.

Meanwhile, international spot gold opened at $1506.80 an ounce last session, dipped as low as $1483.60 and rose as high as $1561.10 before closing up $55.59 or 3.71 percent at $1553.55. Spot silver opened at $12.57 an ounce, dipped as low as $12.24 an ounce, rose as high as $13.26 an ounce and closed at $13.25, up 64 cents or 5.08 percent.

Buoyed by the federal reserve’s latest stimulus measures and the us fiscal stimulus. The previous session of gold prices in Asia after the early jump in the open after the fall, soon after a period of tight consolidation, trading below the $1,500 level. And Europe and the United States session, long suddenly launched a wave of attacks, gold short – term jumped sharply, since the day’s low as much as DORA nearly 80 dollars. The session has now extended further higher to $1581.83 an ounce, pushing it up nearly $30 from session lows.

COMEX gold futures posted their biggest advance since 2009 last session. COMEX April gold futures settled up $83.7, or 5.5 percent, at $1,567.60 an ounce.

The most actively traded June gold contract on the COMEX gold futures market ended 5.7 percent higher at $1,572.70 an ounce, the biggest gain since March 2009.

Gold futures have recorded three consecutive sessions of gains. Senate minority leader Charles schumer also expressed optimism that a fiscal stimulus package could be reached as the federal reserve unveiled unprecedented measures to boost the economy.

Separately, the SPDR Gold Trust, the world’s largest Gold exchange-traded fund, fell 1.5 percent to 908.19 tonnes on Friday.

Bob Haberkorn, market strategist at RJO Futures, said the expectation that the United States would provide more stimulus in addition to what the fed has already done is an important reason for gold to rally ahead.

Tai Wong, head of fundamental and precious metals derivatives trading at BMO, said: “the fed has launched its biggest cannon yet, bigger even than during the great financial crisis.”

In the wake of the fed’s action, Goldman sachs is the latest bank to say it’s time to buy gold. Goldman sachs notes that gold is close to an “inflection point” after the fed’s action and that it is time to follow the fed’s QE lead and buy gold.

Goldman sachs recommends buying gold futures for December 2020 delivery, arguing that the fed’s “unlimited” quantitative easing program has reversed the financial strain and will offset the negative impact of falling demand in emerging markets. “We may be at an inflection point, as we were in November 2008, when panic-driven buying will begin to outweigh liquidity-driven selling,” Goldman sachs analysts Jeffrey Currie and Mikhail Sprogis said in a March 23 report.

As a result, the near-term and long-term outlook for gold appears “much more constructive,” market analysts said. They also reiterated expectations that gold would reach $1,800 an ounce in 12 months ‘time. Goldman sachs notes that the turning point in 2008 was the $600 billion quantitative easing program announced in November of that year, after which gold started climbing despite further weakness in equities and commodities.

Technical analysis

gold

On the daily chart, gold from the low strong rebound, close to the 20 day average, MACD green kinetic energy column continued to significantly narrow, KDJ random index also significantly higher, indicating gold upward momentum strengthening, next expected to further strong rebound.

On the 4 hour chart, gold prices launched a strong rebound, MACD red momentum column expansion, KDJ random indicators bias to the upside, indicating that gold prices will be stable short – term rebound.

silver

On the daily chart, silver prices from the low launched a strong rebound, MACD green kinetic energy column narrowed, KDJ random index turned higher, indicating that silver rebound kinetic energy to restart, continue to pick up.

On the 4 hour chart, silver also showed a strong rebound momentum, MACD red kinetic energy column magnification, KDJ random indicators go higher, indicating that silver short line will expand the upside space.

fundamentals Positive factors:

  1. On Monday, the federal reserve said it would roll out a series of programs aimed at helping markets operate more efficiently in a novel coronavirus crisis. Among them was a pledge to continue its asset purchase programme to “support the smooth functioning of markets and the effective transmission of monetary policy to the broader financial environment and economy”.
  2. National health commission: from 0:00 to 24:00 on March 23, the country reported 78 new confirmed cases, 7 new deaths (7 in hubei province) and 35 new suspected cases. From 0:00 to 24:00 on March 23, 74 new confirmed cases from overseas were reported (31 in Beijing, 14 in guangdong, 9 in Shanghai, 5 in fujian, 4 in tianjin, 3 in jiangsu, 2 in zhejiang, 2 in sichuan, 1 in shanxi, liaoning, shandong and chongqing). As of 24:00 on March 23, a total of 427 confirmed cases from overseas were reported.
  3. The third round of emergency financial aid proposed by republicans in the U.S. stock market has received another procedural vote in the senate. In the end, the vote was 49 in favor and 46 against, failing to meet the procedural threshold of 60 votes.
  4. According to the real-time statistics released by Johns Hopkins university in the United States, as of 7 am Beijing time, more than 370,000 covid-19 cases have been confirmed globally, accounting for 375,458 cases. The number of confirmed cases of novel coronavirus in the United States stood at 43,214, with 533 deaths.

Fundamental negative factors:

Home sales surged to a 13-year high of 5.77 million units in February, U.S. data showed on Friday, reflecting contracts signed in early January and early February before novel coronavirus swept the country. For now, the housing recovery is likely to be stalled by a novel coronavirus outbreak that has triggered a wave of layoffs that has pushed the economy to the brink of recession.

  1. US President Donald Trump said on Thursday that he urged the us food and drug administration to speed up approval of COVID 19, an anti-malarial drug that could soon be used to treat the drug. The national institutes of health (NIH) said Monday that a novel coronavirus vaccine from the United States began phase 1 clinical trials on Monday, with the first volunteer receiving the experimental vaccine.
  2. The European central bank’s announcement on Thursday of a €750 billion ($817 billion) asset-purchase program to combat the outbreak of coronavirus spurred risk sentiment.
  3. US President Donald Trump said on Thursday that he urged the us food and drug administration to speed up approval of COVID 19, an anti-malarial drug that could soon be used to treat the drug. The national institutes of health (NIH) said Monday that a novel coronavirus vaccine from the United States began phase 1 clinical trials on Monday, with the first volunteer receiving the experimental vaccine.

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