New confirmed cases outside Hubei province fell 6 days later, and WHO has sent experts to China! Why does gold go up and down so fast?

According to the latest data from the national health and construction commission on Monday (February 10), more than 40,000 people have been diagnosed with new coronary pneumonia, more than 3,000 have been cured and discharged from hospital, and more than 900 have died. With no major data to be released within days, the market continues to watch for further developments.

The latest outbreak: 3,062 new cases were confirmed nationwide, 40,171 cases were confirmed, 3,281 cases were discharged from hospital, and 908 cases died

According to the national guard is built appoint on February 10, the latest bulletin, on February 9, 0 to 24, 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps report, new confirmed cases, 3062 cases (2618 cases) of hubei province, and severe cases 296 cases (258 cases) of hubei province, the new death cases, 97 cases (91 cases of hubei, anhui in 2 cases, heilongjiang, jiangxi, hainan, gansu each 1 case), the new suspected cases 4008 cases (2272 cases) of hubei province.

On the same day, a total of 632 cases (356 in Hubei province) were cured and discharged from the hospital, and 29,307 people had close contact with the patient under medical observation.

A total of 64 cases have been reported from Hong Kong, Macao and Taiwan: 36 from the Hong Kong special administrative region (1 death), 10 from the Macao special administrative region (1 discharge), and 18 from the Taiwan region (1 discharge).

According to the statistics of the national health and fitness commission, the number of new confirmed cases outside hubei province has decreased for 6 consecutive days. From 0 to 24 o ‘clock on February 9, 444 new cases were confirmed outside hubei province, showing a declining trend for the 6th consecutive day. In the past 5 days, the figures were: 890 cases (3 days), 731 cases (4 days), 707 cases (5 days), 696 cases (6 days), 558 cases (7 days), and 509 cases (8 days). In addition, the accumulative cured cases exceeded the accumulative dead cases for 9 consecutive days, and the newly cured cases exceeded the accumulative dead cases for 11 consecutive days.

Last week, in an effort to ease pressure on the economy, the people’s bank of China made a rmb1,200bn reverse repurchase on the first working day after the lunar New Year holiday and cut interest rates for seven and 14 days. The people’s bank of China (pboc) continued to provide sufficient liquidity last Tuesday and launched 500 billion yuan in reverse repurchase operations, adding up to 1.7 trillion yuan over two days, fully demonstrating the central bank’s determination to stabilize market expectations and boost market confidence.

At the start of the new week, on February 10th, the people’s Bank of China again stepped in to protect market liquidity. The pboc’s open market will conduct a seven-day reverse repurchase operation of rmb700bn today; China’s central bank will conduct a 14-day reverse repurchase operation of rmb200bn in the open market today.

As of the press, A – share gem, shenzhen stock index turned red, the current growth rate of the gem more than 1%.

Analysts say there are growing signs that concerns may have peaked and the focus is shifting to the economic impact.

Paul Ashworth, the chief us economist at capital economics, said: “given that most travel links between China and other countries have been severed, the chances of an outbreak are quite low, at least in western economies. “It looks like the number of new cases in China is starting to decline, and in that case, concerns should recede and the stock market should start to rise for those reasons.”

The world health organization (WHO) has sent a team of experts to China to deal with the outbreak of the newly diagnosed pneumonia, director-general of the world health organization (WHO) Lindesay said on social media Tuesday.

As sentiment shifted, spot gold moved sharply higher and lower, rising as high as $1,575 in early trading on Monday and hitting a high around 1576, before quickly falling below 1570 and as low as $1,568.

Caroline Bain, the chief commodities economist at capital economics, said the coronavirus news would continue to drive the gold market this week.

“Any information we get about the virus will determine the direction of the price,” Bain said. In the past few days, the number of infections has dropped. It’s possible that we’re seeing something that can be controlled very quickly. If that’s the case, I could see gold prices come down.”

Attention is turning to its impact on Chinese production and how it will affect overall global growth.

“The Chinese factories have been closed for a week now,” Ashworth said. If this continues, there will be even more damage, especially through global supply chains. At the moment, it seems to be quite limited.”

But as long as uncertainty persists, gold prices will remain supported, Bain said. “There is still a lot of uncertainty: the virus itself and the economic impact are still unclear. As long as that uncertainty exists, gold will be supported.”

Phillip Streible, the chief market strategist at Blue Line Futures, expects gold to rise to $1,590. “The coronavirus scare will continue to be underlying support,” Streible said.

Gold will also pay more attention to other fundamentals, such as the repo market. “The repo market has been very positive for gold futures. Because these hedge funds trade short-term cash in Treasury bonds, they put the money into risky assets. With U.S. stocks less affected, gold futures could be another product they invest in.”

Last week, in addition, the market will also focus on the dollar, the dollar rallied for 5, beauty refers to hit a four-month highs on Friday to 98.70 above, the biggest weekly gain in more than two years, the city in early trading Monday, attention this week the us CPI and retail sales data, moreover Powell, chairman of the federal reserve will publish semi-annual monetary policy testimony before Congress for two consecutive days, keep an eye on the market.

Inflation is the fed’s main message, said Ryan McKay, commodity strategist at TD securities.

“Inflation has been falling short for a long time,” he said. The fed has made it very clear that they are willing to let inflation exceed expectations for some time. That has tilted gold bullish for the rest of the year. The fed’s willingness to cut rates rather than raise them is one of the more bullish factors for gold this year.”

On the one hand, McKay said, if the fed cuts rates because the coronavirus shock derailed economic growth, “low rates would be good for the gold market.” On the other hand, the fed remains reluctant to raise rates if there is better growth and inflation accelerates. McKay added: “then real interest rates would be severely depressed and could be negative. In this environment, gold is a very good hedge.”

Catril, senior currency strategist at national Australia bank, said inflows into U.S. stocks further supported the dollar. For now, the dollar is unlikely to face a major challenge until the new coronavirus and its full impact on economic activity are better understood.

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