Spot silver was at $17.705 an ounce in Asian trading on Friday. Silver had a volatile session, rising to a high of $17.766 an ounce earlier before retreating in choppy trading, giving up most of its earlier gains.
The dollar has weakened in recent sessions, ending eight straight sessions in negative territory, hitting a low of 96.57 earlier in the session and continuing to struggle near lows.
The dollar fell over the past two weeks as sentiment on risk improved and stocks rose on optimism that the worst of the coronavirus economic downturn is over.
The latest report from the Labor Department showed the number of Americans filing new claims for state unemployment benefits fell to 1.877 million as of May 30. CNBC said it showed the worst of the coronavirus-related jobs crisis was over, but unemployment remained high.
“Even when states reopen, millions of people are still filing for unemployment benefits, which shows that the economic pain from the COVID-19 crisis is still severe,” said Daniel Zhao, senior economist at Glassdoor, a jobs website.
Goldman sachs analysts said, although they expect investors cautious attitude of euro assets in the short term, but due to the low bond yields and corporate revenue of slow growth, the European Union, and now this kind of behavior towards fiscal integration, investors are more firmly believe that as time goes by, the euro will continue to rise, the dollar will continue to fall.
On the other hand, looking ahead, ETF holdings remain strong in the face of improved inflation expectations, stronger monetary and fiscal support and the possibility of further rises in negative real interest rates suggest investors will have reason to return to the gold market, analysts at ANZ Bank note. A recovery in commodity demand, coupled with rising investment in precious metals, has set the stage for silver’s explosive performance, meaning it is likely to continue to show strength against gold.
On the daily chart, the DOLLAR index maintained its recent decline, the MACD green momentum column held steady, and the KDJ random index continued to come under pressure, indicating that the dollar’s downward momentum is still in place, and the coming sell-off will continue.
On a 4-hour chart, the DOLLAR index extended its decline to a low of 96.57 before continuing to struggle in a tight range near lows. MACD green momentum column held steady, KDJ random indicator continued to fall, indicating that the dollar will also remain weak in the short term.
On the daily chart, silver retreated from its high and held steady above its major moving averages. The MACD red kinetic energy column was unchanged and relatively narrow. The KDJ random index came under pressure, indicating that the pullback momentum still existed.
On the 4-hour chart, silver maintained a tight range under pressure, MACD green momentum column unchanged, KDJ random index slightly turned higher, indicating that gold short-term momentum mixed, the coming will continue to maintain a period of tight finishing.
Fundamentals positive factors:
According to statistics from Worldometers, as of June 5, Beijing time, there have been more than 6.68 million confirmed cases and more than 390,000 deaths of COVID-19 worldwide. In the United States, meanwhile, there have been more than 1.92 million confirmed coVID-19 cases and 110,000 deaths.
New claims for jobless benefits fell to 1.877 million as of May 30, labor Department data showed On Thursday, while Economists polled by Dow Jones had expected 1.775 million. CNBC said it showed the worst of the coronavirus-related jobs crisis was over, but unemployment remained high. Since the coronavirus lockdown in mid-March, more than 42.6 million Americans have applied for unemployment benefits.
The US trade deficit surged in April, reigniting fears of a slowdown as the COVID-19 outbreak upended global flows of goods and services and pushed US exports to a 10-year low. Data from the Commerce Department on Thursday showed the trade deficit jumped 16.7 percent to $49.4 billion in April as exports fell to a 10-year low. The trade deficit in goods with China was $22.47 billion in April, compared with $11.83 billion in March.
April, Thursday (June 4) announced that the United States may challenger enterprises cut 397,016 million jobs. The President of Challenger, an employment data firm, said job cuts were the second highest since records began in 1993.
Fundamentals negative factors:
The US Department of Transportation plans to issue a revised order in the coming days that could allow some Chinese passenger jets to continue flying, Reuters reported on Friday, citing GOVERNMENT and airline officials.
On Thursday (June 4), the Civil Aviation Administration of China issued a notice on the Adjustment of International Passenger Flights. Starting from June 8, 2020, all foreign airlines not included in the “Phase 5” flight plan can select a port city capable of receiving and operate one international passenger flight per week within the company’s business license, the circular said. After the adjustment of international passenger flights, 44 airlines from the 23 countries that currently operate flights are expected to add up to 44 flights per week.
On Thursday (June 4), the European Central Bank (ECB) announced that it will expand its PEPP program by 600 billion euros to 1.35 trillion euros and extend the maturity of its bond purchases until the end of June 2021. The European Commission has proposed expanding scrutiny of foreign investment in the region as part of an effort to protect more industries from potential Chinese buyers, according to a draft public document.
Wednesday’s ADP employment report showed private employers cut another 2.76 million jobs in May, better than the expected 9 million drop. The figure was much better than expected, suggesting the worst may be over.