On Wednesday (March 25) sub-session, spot silver after a sharp rise in the fall, now trading around $14.25, after three consecutive days of gains, days to focus on the ability to hold the $14 mark.
Silver had a strong day, breaking through the key $14 barrier and as high as $14.35, up 7.5% on the day.
Stocks surged across the board Tuesday, with the dow Jones industrial average soaring, Posting its biggest one-day percentage gain since 1933.
By the close, the dow Jones industrial average was up 11.37% at 20,704.91; The s&p 500 jumped 9.38% to 2,447.33. The nasdaq gained 8.12 percent to 7,417.86.
Colin Cieszynski, chief market strategist at SIA wealth management in Toronto, said: “global equity markets have soared overnight and there are many signs that there may be light at the end of the tunnel and that governments are taking action to ease investors’ concerns about how long the slowdown will last.”
In the news, senior Democrats and Republicans said Tuesday they were close to a deal on a $2 trillion economic stimulus bill that would provide financial aid to unemployed Americans and help struggling industries.
According to the Associated Press, the economic rescue package under consideration is bigger than the 2008 bank rescue and 2009 stimulus packages combined.
“I think we are very close to an agreement,” said Treasury secretary Steven mnuchin, the top republican negotiator. Again, I won’t go into details. We are very close. We are working on those issues.”
The rescue plan failed to pass the 60-vote threshold in the senate for the second day in a row, Reuters reported. The vote was 49-46.
Republicans, who previously controlled the senate by a 53-47 margin, were unable to move legislation on their own, and some senators were quarantined because they tested positive for a novel coronavirus or had close contact with a confirmed patient. If the plan is to pass, it will require bipartisan consensus.
In addition, CNBC, quoted sources as saying that the President and vice President Mr. Burns trump one day with a number of important investors held a conference call on Wall Street, they COVID – 19 outbreak impact on the U.S. economy and market issues such as how to move to the epidemic of are discussed, they concluded a consensus after the meeting, including: not allowed to America’s economic collapse, causing the outbreak will be coronavirus not permanent existence and enterprises should take more complete resistance to disease of move and so on.
Investors also took comfort from President Donald trump’s announcement on Monday that he was considering how to resume some business activity after a 15-day shutdown ends next week.
In an interview with Fox News at the White House, Mr. Trump said there was a need to restart the country and that he hoped it could be done by Easter on April 12.
It is worth noting, however, that the number of confirmed cases in the United States is growing rapidly and could become the center of a new outbreak. According to real-time statistics released by Johns Hopkins University in the United States, as of around 7 am Beijing time on March 25, a total of 53,268 confirmed cases and 696 deaths of covid-19 were reported in the United States. In one day, there were 10,054 new confirmed cases and 163 new deaths compared with 7 am the previous day.
The world health organisation said on Tuesday that the us could become a new centre of the coronavirus pandemic because of a “dramatic and rapid increase” in the number of cases of coronavirus infection.
Rae Rosen, a former vice president of the New York fed, said the new outbreak was more damaging to the economy than the financial crisis of 2008. While the impact remains uncertain, there could be a severe recession or even a great depression.
On the daily chart, the dollar index is now consolidating at a high and in a moderate decline, hitting a low of 101.04 the day before as the fed’s aggressive massive stimulus temporarily eased liquidity concerns. On the technical side, the MACD red kinetic energy column continued to weaken, the RSI index from the overbought level down, the KDJ random index is still in the overbought level area, suggesting a slight decline.
4 hours chart, the dollar index is in a volatile trend of decline, the current winding around the 20 moving average, but the overall still maintain a high consolidation momentum unchanged. In technical terms, MACD green kinetic energy column stable, RSI index fell below the 50 levels, KDJ random index hovering below the 50 levels, the short term may still be lower.
On the daily chart, silver rose for 4 consecutive days before the intraday high consolidation, is still below the main moving average, focuses on whether can close a firm 14. From the technical perspective, MACD green kinetic energy column continues to weaken, RSI index trading near the 50 levels, KDJ random index approaching 50, pay attention to the possibility of further higher.
On the 4-hour chart, silver is still in the rising trend starting at $11.62, and is now as high as $14.70, below the key 100-period moving average. In technical terms, the MACD red kinetic energy column continues to weaken, KDJ random index trading in the overbought level area, the short line may be lower.
fundamentals Positive factors:
- According to real-time statistics released by Johns Hopkins University in the United States, as of around 7 am Beijing time on March 25, a total of 53,268 confirmed covid-19 cases and 696 deaths were reported in the United States. There were 10,054 new confirmed cases and 163 new deaths compared with 7 a.m. the previous day.
- Indian prime minister Narendra Modi has announced that India will initiate a blockade for 21 days. Analysts have warned that the global drug supply chain, which relies heavily on China and India, could be disrupted as India takes tough measures to contain the spread of the virus, worsening an already fragile supply situation.
- As of 6:16 p.m. Et on March 23, there had been at least 43,214 confirmed cases of COVID 19 in the United States, including 533 deaths, according to the Johns Hopkins real-time surveillance system. Us states reported more than 100 new deaths on March 23, the first time since the outbreak began that the number of deaths in the us has risen to triple digits in a single day.
- On Monday, the federal reserve said it would roll out a series of programs aimed at helping markets operate more efficiently in a novel coronavirus crisis. One was a pledge to continue its asset-purchase program.
Fundamental negative factors:
- U.S. President Donald Trump and vice president mike pence held a conference call with Wall Street leaders to discuss the economic impact of COVID 19. Mr. Trump said he accepted he could not restart the economy immediately but did not want to shut it down for six months, prompting an outburst of risk sentiment.
- Wall Street rallied on signs that Congress is close to reaching an agreement on a $2 trillion economic rescue plan.
- Holdings of SPDR Gold, the world’s largest listed Gold exchange-traded fund, fell 1.5% to 908.19 tonnes on Friday.
- On March 23, U.S. Treasury Secretary Steven mnuchin recently said he was close to reaching an agreement on a stimulus bill.