After several days of sharp gains, silver prices began to fall from their highs. Silver came under further pressure in Asian trading on Friday after plunging the previous day, falling as much as 2 percent on the day to as low as $16.65.
Plunge by more than 2%, the boj price lost of $17 for the key, once fell below 200 – day moving average level, mainly because of the latest tensions between China and America in the world’s two largest economies trade agreement at the beginning of this year, the over optimism of economic recovery, the demand for industrial dominant silver is undoubtedly a punch.
Worldometers world real-time statistics show that as of 11:11 on May 22, Beijing time, the global total number of confirmed covid-19 cases exceeded 5.19 million, reaching 5,194,210, and the total number of deaths exceeded 334,000, reaching 334,621.
Among them, the United States had more than 1.62 million confirmed cases of covid-19, or 1,620,902, and more than 96,000 deaths, or 96,354. Both confirmed cases and deaths were the highest in the world.
Tensions are rising between China and the United States. The back-and-forth between China and the U.S. has raised concerns that tensions between the world’s two largest economies could threaten the first phase of a u.s.-china trade agreement reached earlier this year.
In addition, the intraday market is also focused on trump’s important decision. The trump administration is pulling out of the nearly 30-year-old Open Skies Treaty, which aims to reduce the risk of war between Russia and the west, according to people familiar with the matter. A government source said the announcement could be made on May 22.
Trump is expected to withdraw from the open skies treaty on May 22 and withdraw within six months, according to a trump administration official. The treaty, which the United States joined in 2002, aims to reduce the risk of military miscalculation leading to war. The United States says it will withdraw from the treaty because it believes Russia violated the rules.
To this end, the permanent representatives of NATO member states will hold an emergency meeting on the 22nd. Germany’s foreign minister called on the us to reconsider the decision.
The open skies treaty, which is now joined by 34 countries, including Russia and most NATO members, allows unarmed air surveillance flights across member states to gather information about each other’s militaries, with the aim of increasing mutual understanding and trust.
U.S. government officials have complained in the past that Russia is not allowing U.S. and other western aircraft to fly over Kaliningrad, a city where Russia is believed to be deploying nuclear weapons capable of reaching Europe, or to fly through airspace used for major Russian military exercises. U.S. officials also noted that President trump was angered when a Russian plane flew directly over the U.S. state of New Jersey in 2017.
Marshall Billingslea, President trump’s special envoy on arms control, noted that “the United States cannot continue to abide by the treaty if Russia can violate it with impunity.”
The United States has 60 days to meet with Russia and other signatories to the treaty if it formally withdraws.
According to us media, it will be the second time that trump will withdraw from the international military peace treaty on the grounds of the loss of us interests after withdrawing from the landmark arms control treaty with Russia in 2019.
In 2019, the U.S. also withdrew from the I.N.F. treaty because of Russia’s long-standing violations, and the two countries’ only existing military treaty, the new start treaty, is set to expire early next year. The trump administration believes China needs to be included if the arms treaty is to be extended.
According to a separate report from the Turkish star on May 21, Russian foreign ministry spokeswoman Anna zakharova said on the country’s state channel that the trump administration has not yet made a formal statement through diplomatic channels that the United States is about to withdraw from the open skies treaty, and that Russia is waiting for the United States to clarify its position on the issue.
Vladimir yermakov, head of the Russian foreign ministry’s arms control department, said in a stern statement that if the United States pulled out of the agreement, Russia would immediately assess the situation and launch a plan B to deal with it.
On the daily chart, the dollar index on the basis of the previous day’s rise further, the current trading around 99.50, the overall winding around the 60 moving average. On the technical side, the MACD green kinetic energy column is gradually weakening, and the KDJ random index is trying to stabilize after falling below the 50 level, suggesting that short dollar momentum is starting to weaken, and then it is expected to stabilize and rebound.
As you can see from the 4-hour chart, the dollar index has rebounded since hitting a low of 99.00 and is now rising above its 20-day moving average, where there is still a lot of moving average resistance. MACD red kinetic energy column gradually expanded, KDJ stochastic index pulled close to the overbought level, indicating a strong dollar short-term rebound momentum.
On the daily chart, after a sharp retreat from the previous day’s highs, silver prices further came under pressure during the day and have now lost the key $17 level. The MACD red kinetic energy column weakened, with the KDJ random moving down from overbought levels, suggesting silver could lose momentum or fall further.
On the 4-hour chart, silver continues to fall after hitting a high of $17.63 and is now closing in on the key 50-session moving average below $16.50. MACD green momentum extended sharply and the KDJ random fell below the 50 level, suggesting silver’s downward momentum intensified and could move lower in the short term.
Fundamental positive factors:
- Worldometers world real-time statistics show that, as of 11:11 on May 22, Beijing time, the global total number of confirmed covid-19 cases exceeded 5.19 million, reaching 5,194,210, and the total number of deaths exceeded 334,000, reaching 334,621.
- The United States has announced its intention to withdraw from the open skies treaty, which allows 35 countries, including Russia, to conduct unarmed surveillance flights over each other’s territory to ensure that they are not prepared to take military action. The trump administration has previously said that Russia has repeatedly violated the terms of the agreement.
- The U.S. senate on Wednesday passed a bill that could block some Chinese companies from listing on U.S. exchanges unless they comply with U.S. auditing and regulatory standards.
- The fed minutes reaffirmed their commitment to using all policy tools to support the economy. “Participants commented that, in addition to the significant short-term impact on economic activity, the economic impact of the pandemic created considerable uncertainty and posed considerable risks to economic activity in the medium term,” the minutes added.
Fundamental negative factors:
- U.S. President Donald trump says the federal reserve and Treasury departments still have “ammunition” in their arsenals to help an economy battered by a novel coronavirus pandemic, though he doubts new measures are necessary. In addition, he said, “we will not close our country” if the United States suffers a second wave of coronavirus infections.
- The growth of covid-19 in the United States has slowed down slightly recently, and many states in the United States have lifted epidemic prevention restrictions to varying degrees and restarted their economies. By May 20, local time, all states had entered the restart phase.
- As of Wednesday, every state in the United States will begin unwinding measures put in place weeks ago to contain the spread of the coronavirus, even as the daily rate of new cases continues to rise in some parts of the country. The last state to lift some restrictions is Connecticut, which will allow outdoor dining venues, offices, retail stores and malls, museums and zoos to reopen with restrictions on Wednesday.
- Us biotech company Moderna says the vaccine mrna-1273 for covid-19 is safe and well tolerated; The final phase of vaccine trials is expected to begin in July. Dynavax, an American biopharmaceutical company, followed with good news. A novel coronavirus vaccine trial could take place as early as July, the company said.