Spot silver was trading at $17.495 an ounce in Early Asian trading on Friday. Silver fell sharply to a low of $17.373 an ounce, down 0.76 percent on the day, and has recovered slightly from the low, but the weak trend remained unchanged, the bears seem to remain “hot”.
In another sign of fresh trade news this week, U.S. Treasury Secretary Steven Mnuchin said Thursday that he was looking at various responses to China’s push for a Hong Kong version of its national security law through capital market measures, including some that might restrict the flow of U.S. capital through Hong Kong’s market.
Mr. Mnuchin said he was focused on how the United States would respond to the Hong Kong issue through the President’s capital markets working group. President Donald Trump last week ordered the treasury-led panel to recommend action to protect American investors within 60 days.
When asked whether the us Treasury is considering measures to restrict the flow of the capital through the Hong Kong market, he said, the President’s working group to study accounting issues related to the Chinese enterprises, and will publish a full report, “in the protection of our capital market and to achieve the right balance between the current situation”.
Referring to the U.S. -China trade agreement, Mr. Mnuchin said he expected China to fulfill its obligations under the first phase of the trade agreement. “So far, we believe they are meeting their obligations, but we will be watching closely,” Mr. Mnuchin said.
The US Department of Agriculture said on Thursday that US exporters reported selling 720,000 tonnes of soyabeans to China, marking the second consecutive week of aggressive purchases by China.
In a weekly report released on Thursday, the US Department of Agriculture said it sold a net 1m tonnes of soyabeans for export in the week to June 4 of the 2019/20 sales year, of which 337,000 tonnes went to China and 213,200 tonnes to unknown destinations. Total sales of new crops exceeded 1.2 million tons, of which 517,000 tons were sold to China and 644,000 tons to unknown destinations.
Next, we need to keep an eye on china-us relations and trade developments, as new surprises could trigger big market swings again.
In terms of coVID-19, according to statistics from Worldometers, a real-time information and data update website, the cumulative number of confirmed cases of COVID-19 worldwide has exceeded 7.59 million, with 7,595,646 confirmed cases and 423,811 deaths so far exceeding 420,000. In the United States, there have been more than 2.08 million confirmed cases of COVID-19, or 2,089,701, and more than 116,000 deaths, or 116,034.
According to joongang Ilbo, 13 people have been confirmed to have coVID-19 as of Monday in a welfare home for the elderly in Seoul’s Daofeng district.
On 12 June, 56 new confirmed cases of COVID-19 were reported in South Korea, bringing the total number of confirmed cases to 12003.
At present, there are still lingering fears that the second wave of coVID-19 is coming back around the world. The recent rebound of covid-19 in South Korea and clusters of covid-19 in several places have further heightened market worries and investors need to stay vigilant.
On the daily chart, the DOLLAR index extended its decline to a low before rebounding, the MACD green momentum column narrowed, and the KDJ random index turned higher, indicating that the dollar rally momentum restarted and the coming rally continued.
In the 4-hour chart, the DOLLAR index started to rebound from the low, the MACD red kinetic column expanded, and the KDJ random index rose further, indicating that the dollar’s short-term rebound momentum strengthened, and the incoming continuation of short-term rebound momentum.
On a daily chart, silver settled in a narrow range and is now again below its 10-day moving average, but remains firmly above other major moving averages. The MACD green momentum column is slightly enlarged, and the KDJ stochastic turns lower, indicating that silver’s retracement momentum strengthens and may fall further.
In the 4-hour chart, silver prices extended the trend of retreat, MACD green momentum column slightly expanded, KDJ random index further lower, indicating that silver short-term downward momentum strengthening, the incoming further extension of the decline.
Fundamentals positive factors:
- According to statistics from Worldometers, as of 0938 June 12, the cumulative number of confirmed cases of COVID-19 worldwide has exceeded 7.59 million, so far 7,595,646 cases have been confirmed and 423,811 deaths have exceeded 420,000.
- The National Health Commission said there were seven new confirmed cases yesterday, including six imported cases (five in Shanghai and one in Fujian) and one local case in Beijing. No new deaths; There were no new suspected cases.
- While the world is slowly restarting its economy, fears of a second wave are growing as the number of confirmed cases in US states skyrocket. It took nearly three months to reach a million confirmed cases in the United States, but only six weeks to double the number of confirmed cases. According to data obtained by Yahoo News from the CENTERS for Disease Control and Prevention (CDC), one-day cases in the United States rose 36.5 percent in recent days as street protests and state restarts continued.
- The Federal Reserve reaffirmed its commitment to continuing to provide unconventional spending to the economy in the early hours of Thursday, as policy makers forecast THAT GDP would shrink 6.5 percent this year and unemployment would hit 9.3 percent by the end of the year. “The current public health crisis will weigh on economic activity, employment and inflation in the short term and pose considerable risks to the medium-term economic outlook,” the Fed said in its latest policy statement. Policymakers issued their first economic forecasts since December, saying they would keep overnight interest rates near zero until the end of 2022.
Fundamentals negative factors:
- Moderna confirmed that it expects to begin phase III studies of coVID-19 vaccine candidates in July, according to a statement on Thursday. The final phase of the placebo-controlled study will include 30,000 subjects in the United States. Participants in the non-placebo group will receive 100 micrograms of the candidate vaccine, which has been identified as “the best dose to maximize the immune response and minimize adverse reactions,” the statement said. Phase III trials will be conducted with the National Institutes of Health.
- Regeneron Inc. said it is testing a novel coronavirus drug in humans in multiple locations. This is the first time that the novel Coronavirus antibody “cocktail” drug has been tested in humans in the United States, and the company expects it to be available in the fall if the trial is successful.
- New claims for jobless benefits fell for the 10th straight week last week, according to labor Department data released on Thursday, as the U.S. labor market continued its slow recovery from the coronavirus pandemic. Initial claims were 1.54 million, below the 1.6 million forecast by Economists polled by Dow Jones and down 355,000 from just under 1.9 million the previous week. The four-week moving average fell by 286,250 to 2 million. Continuing claims for state unemployment benefits fell by 339,000 to 20.9 million.
- The U.S. Consumer price Index fell 0.1% in May, according to labor Department data released On Wednesday. The core CPI fell 0.1 percent on a monthly basis. The CPI grew at an annual rate of 0.1% in May; Core CPI grew at an annual rate of 1.2%.