Spot gold fell on Tuesday, missing the key 1570 level and testing as low as $1567 as the market continued to watch the trend of the outbreak. In the session, the focus will be on tonight’s speech by federal reserve chairman Colin Powell.
Similar to international gold, Shanghai gold exchange gold T+D was also under pressure during the Asian session, currently trading around 352 yuan/g, down 0.26 percent on the day. Gold was down 0.07 percent at 352.94 yuan per gram in early trading at T+D.
In silver, spot silver stayed in a tight range, currently trading around $17.75, in a narrowing range, still above its main moving average, awaiting Powell’s testimony.
Silver T+D edged up on the Shanghai gold exchange and is currently trading around 4256 yuan/kg. Silver T+D opened the day down 0.02 percent at 4,257.00 yuan/kg.
This trading day, the market continues to focus on the development of a new outbreak of coronary pneumonia in China. According to the national health and construction commission, as of 24:00 on February 10, there were 37,626 confirmed cases, 3,996 cured and discharged cases, 1,016 deaths, 42,638 confirmed cases and 21,675 suspected cases. A total of 428,438 close contacts were traced, and 187,728 close contacts were still under medical observation.
It is worth noting that, according to the statistics of the national health and fitness commission, 381 new cases were confirmed from 0 to 24:00 on February 10, which was the seventh consecutive day of decline. In the past, there were 890 cases (3 days), 731 cases (4 days), 707 cases (5 days), 696 cases (6 days), 558 cases (7 days), 509 cases (8 days) and 444 cases (9 days).
In addition to continuing to track the outbreak, markets were also keeping an eye on an evening speech by federal reserve chairman Colin Powell. Fed chairman Colin Powell testified before the house financial services committee at 23:00 Beijing time on Tuesday on the semiannual monetary policy report. Later tomorrow night, at the same time, he will testify before the Senate banking committee on the semi-annual monetary policy report.
“I think [Powell] will probably be asked for more comment on the potential impact of the new coronavirus and how the fed will respond,” said Mary Ann Hurley, vice president of fixed-income trading at D.A. Davidson.
In its semi-annual monetary policy report to Congress on Friday, the federal reserve said the outbreak of the new coronavirus posed “new risks” to the US and global economic outlook, warning that global markets would be affected.
On the eve of Powell’s speech, US President Donald Trump renewed the pressure, saying he was “disappointed” by fed chairman Colin Powell, according to media reports on Tuesday. Mr. Trump has complained that the fed is raising rates too fast and cutting them too slowly.
Fundamentals favorable factors:
1, according to the national WeiJianWei, ending at 10th February 24, according to the 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps, existing confirmed cases, 37626 cases of 7333 patients with severe cases (), the cumulative hospital cured cases 3996 cases (zhejiang subtract 1 case), the cumulative death cases, 1016 cases, has reported 42638 cases of confirmed cases (subtract 12 cases of zhejiang, jiangxi nuclear add 1 case), the existing 21675 cases suspected cases.
- The world health organization (WHO) said on Monday that the outbreak of the new coronavirus in people WHO have not visited China could start a “prairie fire” and must not be allowed to get out of control.
3, according to the national WeiJianWei, 24 to February 9, according to the 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps, existing confirmed cases, 35982 cases of 6484 patients with severe cases (), the cumulative cured cases, 3281 cases of hospital, the cumulative death cases, 908 cases, has reported 40171 cases of confirmed cases (hubei subtract 87 examples, jiangxi province, gansu subtract 1 case), the existing 23589 cases suspected cases.
4, according to the national WeiJianWei, on February 8, 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, 2656 cases (2147 cases) of hubei province, the new 87 cases of severe cases (52 cases) of hubei province, the new death cases, 89 cases (2 cases of 81 cases of hubei, henan, hebei, heilongjiang, anhui, shandong, hunan, guangxi, 1 case), the new suspected cases 3916 cases (2067 cases) of hubei province.
Fundamental negative factors:
- Philadelphia fed President Richard Harker said on Monday that the fed was monitoring the impact of the new outbreak, but added that there was not much it could do.
2.Friday’s U.S. labor department data showed the U.S. economy added 225,000 jobs in January, compared with an expected gain of 160,000 and a revised gain of 147,000. The data also showed the unemployment rate unexpectedly rose to 3.6 percent in January from an expected and previous reading of 3.5 percent. Average U.S. hourly wages rose at a 3.1 percent annual rate in January, compared with expectations for a 3.0 percent increase after a 2.9 percent gain. Average hourly wages rose 0.2 percent in January, below expectations of 0.3 percent.
3. The tariff commission of the state council of China said in a statement on Thursday that it will reduce tariffs on about 75 billion U.S. dollars of imports from the United States from next Friday to 5 percent from 10 percent and 2.5 percent from 5 percent. He said he hoped to work with the United States toward the eventual elimination of all tariffs.
4. The number of Americans filing new claims for jobless benefits for the week ended February 1 was 202,000, lower than expected and lower than expected, and the lowest in nearly nine months.