Silver was at $18.195 an ounce in Asian trading on Tuesday. Silver extended volatile gains to $18.197 an ounce on the day before retreating from that point, hitting an intraday low of $18.114 an ounce, now down 0.4 percent.
While the global epidemic continues to spread and tensions in the United States continue to rise, the direction of china-us relations is always on the nerves of investors. If there is any unexpected news at that time, the combination of multiple factors may trigger severe market fluctuations.
China has asked state-owned companies to stop buying soybeans and pork from the us after US President Donald trump said he would scrap special treatment for Hong Kong in response to China’s national security law in the city, CNBC reported, citing two people familiar with the matter.
Heavy government purchases of U.S. corn and cotton have also been halted, one of the sources said. If the U.S. government takes further action, China could extend the directive to more U.S. agricultural products, these people said.
After trump’s comments on Friday, Chinese importers have canceled imports of 10,000 to 20,000 tons of U.S. pork, roughly equivalent to a week’s worth of orders in recent months, the source said.
Another source familiar with the administration’s plans said the worst-case scenario is that if trump continues to target China, China will have to abandon the first phase of the trade deal.
Edward Moya, senior market analyst at broker OANDA, said there is growing concern that the first phase of the u.s.-china trade agreement is about to be torn up. Meanwhile, street protests in several parts of the United States have raised fears of a second wave of novel coronavirus infections. The dollar index fell to its lowest level since mid-march, further supporting gold.
Precious metals are seen as safe havens in times of political and economic uncertainty. But optimism about the potential availability of a covid-19 vaccine, as well as the unlocking of the vaccine elsewhere, helped global stocks rise to near three-month highs, limiting gains in gold and silver.
On the daily chart, the U.S. dollar index continued to decline, MACD green momentum column extended, KDJ random index further pressure lower, indicating the dollar to maintain short momentum, next expected to extend the decline.
On the four-hour chart, the U.S. dollar index also maintained a large shock decline, MACD green momentum column held steady, KDJ random index continued to decline, indicating that the dollar will further shock short – term decline.
On the daily chart, the price of silver held steady in the near future rebound potential, MACD red kinetic energy column unchanged, KDJ random index moderate flat, indicating that silver temporarily barely hold rebound kinetic energy, but strength slightly insufficient.
On the 4-hour chart, silver was trading in a narrow range at the high end, the MACD red kinetic energy column narrowed, and the KDJ random index turned lower, indicating that gold may fall from high pressure in the short term.
Fundamental positive factors:
Worldometers world real-time statistics show that as of June 2, Beijing time, the global total number of confirmed covid-19 cases has exceeded 6.36 million, and the total number of deaths has exceeded 370,000. The us has the largest number of confirmed covid-19 cases in the world, with more than 1.85 million cases and more than 100,000 deaths.
China has asked state-owned enterprises to stop buying soybeans and pork from the us after US President Donald trump said he would scrap special treatment for Hong Kong in response to China’s national security law in the territory, CNBC reported, citing two people familiar with the matter. Heavy government purchases of U.S. corn and cotton have also been halted, one of the sources said.
US President Donald trump has threatened to deploy troops if states and cities fail to quell demonstrations. Lawyers for George Floyd’s family called Monday for first-degree murder charges against Minneapolis police officer Derek Chauvin. An independent autopsy found that Freud died of “asphyxiating death due to pressure on the neck and back, resulting in a loss of blood flow to the brain and asphyxiation,” lawyers said.
US President Donald trump said on Friday that Hong Kong no longer has enough autonomy to enjoy the special treatment granted by the us and that his administration will begin the process of removing the policy exemptions that grant special treatment to Hong Kong. Mr. Trump also announced several other measures aimed at Hong Kong and China. Mr. Trump said the United States would take measures against Hong Kong officials involved in undermining the territory’s autonomy. Meanwhile, Mr Trump said on Friday that he would end the us’s relationship with the world health organisation.
Fundamental negative factors:
Manufacturing in the euro zone appears to have passed its nadir, according to a survey released on Monday. The manufacturing purchasing managers’ index for the euro zone fell to its lowest level in nearly 22 years in April, but rebounded last month. The index rose to 39.4 from 33.4 in April.
U.S. manufacturing activity pulled off an 11-year low in May, the institute for supply management said on Monday. The data boosted investor sentiment.
On Friday, U.S. stocks rose after President trump announced a response to new security legislation against China, but didn’t mention any economic sanctions or trade actions that pose less of a threat to the U.S. economy than investors feared.
The number of americans continuing to claim state unemployment benefits fell to 21.052 million in the week ended May 16 from 2.053 million, labor department data showed on Friday. The number of people renewing unemployment benefits fell by 4 million, the first drop since the coronavirus outbreak began.