In Asian trading on Thursday, spot silver continued to trade in a narrow range, now trading around $15.50, while still waiting for a stimulus.
Silver price in recent days has been a continuation of a narrow range shock pattern, the overall trading between the 20-day average and the 100-day average, trading increasingly narrow range, focus on the possibility of a breakthrough.
Statistics from real-time data update website worldometers show that as of 12:01 Beijing time on May 14, there were more than 4.42 million confirmed cases of covid-19 worldwide, with a total of 4,429,744 confirmed cases and 298,174 deaths of more than 298,000.
Among them, there were more than 1.43 million confirmed cases of covid-19 in the United States, or 1,430,348 cases, and more than 85,000 deaths, or 85,197 cases.
U.S. nonfarm payrolls plunged an astonishing 20.5 million in April as people were forced to stay at home and businesses were forced to shut down to contain the spread of the virus. Novel coronavirus has infected more than 4.3 million people worldwide.
‘the economic outlook is highly uncertain and downside risks are significant,’ fed chairman colin Powell said on Wednesday. ‘policy makers must do more to get the economy out of the covid-19 situation.’
Whether the economy recovers depends in large part on the many questions surrounding novel coronavirus, such as how soon effective treatments will emerge, whether the end of social isolation will lead to a rebound, and when consumer and business confidence will return, he said.
He called on congress to step up fiscal action. “additional fiscal action may be costly, but it is worth it if it helps prevent long-term economic damage and allows us to recover better,” he said. In response to market expectations of negative interest rates, he said negative rates were not currently on the fed’s agenda.
Since the April rally, stocks have wobbled as investors and the government try to weigh the risks of a quick economic restart against the financial damage of a lockdown, amid fears of a repeat outbreak.
Investors’ bets on a quick economic recovery have helped the three major U.S. stock indexes rise about 30 percent from the lows they hit in March. But as officials around the world and in parts of the United States begin to loosen lockdowns to restart local economies, fears of a second wave of infections have dampened those hopes.
Tony Huntley, chief investment officer at Adansonia Capital in Melbourne, said: “we don’t think the market will retest its lows, but it may have peaked, so I expect a correction. The question is whether we are going to have a second wave [of infections], and that is my biggest concern.”
“Global markets are still licking their wounds,” said Olivier Korber, currency strategist at societe generale. “equities are still strong but the rally is slowing. “Unfortunately, the second wave is not a tail risk, so the overall damage to the economy may be underestimated.”
On the daily chart, the dollar index in the last day rebound after holding gains, now trading above the 100 level, above the main moving average level. On the technical side, the MACD red kinetic energy column appears initially, the RSI index hovered around 50, and the KDJ random index approached the overbought level, suggesting that there is still room to rise.
On the 4-hour chart, the usd index appears to be forming up highs and lows, with a focus on whether the recent high of 100.40 can be broken, which will confirm the uptrend. MACD red kinetic energy column slightly expanded, KDJ random index approaching the overbought level, short – term is still expected to rise.
Daily chart, silver to maintain a high consolidation pattern, trading around $15.50, winding around the 60 moving average. MACD red kinetic energy column is very weak, KDJ stochastic index approaching the overbought level, alert to the possibility of a pullback.
4 hours on the chart, silver prices are still continuing the previous high wide shock pattern, now above the main average level. MACD green kinetic energy column basically stabilized, KDJ random index continues to hover near the 50 level, short line or continue to consolidate.
Fundamental positive factors:
- Statistics from real-time data update website worldometers show that, as of 12:01 on May 14, Beijing time, the global total number of confirmed covid-19 cases exceeded 4.42 million, with a total of 4,429,744 confirmed cases and 298,174 deaths exceeding 298,000.
- Federal reserve chairman colin Powell said on Wednesday policymakers may have to use more weapons to pull the United States out of the economic mire, but flatly rejected negative interest rates, saying the central bank was not considering such a move.
- The head of the international monetary fund said it was “very likely” that global growth forecasts would be cut further because many economies had been hit harder by the outbreak than previously thought.
- The novel coronavirus that has killed 80,000 americans has not been brought under control and treatments and vaccines may not be ready until late August or early September, Anthony Fauci, director of the national institute of allergy and infectious diseases, told congress on Tuesday.
Fundamental negative factors:
- U.S. President Donald trump said on Wednesday he still strongly believes the federal reserve should implement negative interest rates, but gave a nod to fed chairman colin Powell.
- Atlanta federal reserve bank President Raphael Bostic said recently that negative interest rates are not a good option in a time of crisis.
- James Bullard, President of the st. Louis federal reserve bank, reiterated scepticism about negative interest rates, noting that the strategy has a history of mixed results and “is not a very good solution for the United States.” Dallas federal reserve bank President Robert Kaplan recently told CNN he opposes negative interest rates.
- Amid rising tensions between China and the United States, China’s tariff commission of the state council on Tuesday announced a new list of goods to be exempted from additional U.S. tariffs, including 79 items including rare earth metals and gold ore.