Spot gold fell sharply in early Asian trading on Thursday, briefly approaching $1,605 an ounce. According to the latest outbreak data in hubei, the number of new confirmed cases in hubei dropped to triple digits in a single day and declined for the third consecutive day. Gold prices were hit by a dip in risk aversion as investor fears about the outbreak eased. Investors will continue to keep an eye on the latest news on the outbreak in China during the session, and European central bank minutes tonight Beijing time could spur currency volatility in the euro.
Gold remained above $1,600 an ounce on Wednesday as concerns about the new coronavirus and its impact on global economic growth boosted safe-haven demand. Apple warned on Monday that its sales could fall because of slow growth at its manufacturing plants in China.
However, gold failed to gain ground after briefly breaching $1,610 an ounce, before retreating.
Among the factors limiting gold’s rises were better-than-expected U.S. housing starts and a stronger stock market amid signs of a slowdown in coronavirus infections.
Spot gold fell sharply in early Asian trading on Thursday, hitting as low as $1,605.93 an ounce.
New diagnoses in hubei have dropped to triple digits
From 0:00 to 24:00 on February 19, 2020, 349 new cases of coronary pneumonia were confirmed in hubei province, and 62,031 new cases of coronary pneumonia were reported in hubei province by 24:00 on February 19, 2020, according to the latest announcement of hubei provincial health and fitness commission on Thursday.
From 0 to 24:00 on February 19, 349 new cases were confirmed in hubei province, showing a downward trend for the third consecutive day. In the past, there were 1,933 cases (16 days), 1,807 cases (17 days) and 1,693 cases (18 days). Notably, this is the first time since January 29 that the number of new confirmed cases in hubei has fallen below 1,000.
In addition, more than 10,000 people have been cured and discharged from hospital in hubei. From 0 to 24 hours on February 19, 2020, an additional 1,209 cases were discharged from hospital in hubei. By 24:00 on February 19, 2020, a total of 10,337 cases had been cured and discharged from hospital in hubei.
On February 16, wuhan deployed to carry out the three days of intensive produced large screen, the implementation of the five “one hundred percent”, namely “diagnosed with one hundred percent stipulated, in patients with suspected nucleic acid detection, fever patients were one hundred percent, one hundred percent one hundred percent close contacts isolated village, village one hundred percent for 24 hours closed management.” We will resolutely curb the spread of the epidemic. On February 19th, the 3-day deadline expired.
Gold hit $1,611.20 an ounce overnight, but faces solid resistance in the region, Economies.com said in an article on Thursday. It is now waiting for positive momentum to help gold breakthrough that level and open the way for further intraday and short-term gains.
Economies.com said it needs to be reminded that its next target for gold is $1,625.00 an ounce. Gold remains above $1,575.90 an ounce, a key condition for continued bullish expectations.
The euro minutes hit tonight
At 20:30 Beijing time on Thursday, the European central bank will release the minutes of its January monetary policy meeting, which is expected to have an impact on the euro.
The European central bank left interest rates unchanged at its meeting on January 23rd and launched its first strategic review in nearly two decades. The ECB launched the review to determine whether its inflation target was appropriate.
‘downside risks to the economy are less significant, but inflation is still too low and needs to remain accommodative for a long time,’ ECB President Christine Lagarde said at a post-meeting news conference at the time.
Expectations of further interest rate cuts by the European central bank have risen amid weaker eurozone economic data, weighing on the euro’s recent performance. In Asian morning trading on Thursday, the euro/dollar was under pressure near the 1.0800 marks.
Interest rate futures point to a nearly 60 percent chance that the ECB will cut rates once before June; Investors may get more clues from the latest Eurobank minutes.
Economic data released this week and minutes from the ECB’s January meeting will be key, said FX Street analyst Valeria Bednarik. The ECB’s January decision to open a review of the policy framework is expected to give some details of the discussions.
Analysts said that if the ECB minutes were more dovish, market expectations of further ECB rate cuts would rise, which would hit the euro.