Silver investment: trump tweets out of the blue! A dollar short – term acceleration high! Beware of precious metal short – term correction!

Spot silver was at $15.220 an ounce in Asian trading on Tuesday. Silver prices on the day to maintain the shock decline, earlier briefly rose to $15.312 / oz, then quickly fell back, is still maintaining the shock downward trend.

Jim Wyckoff, senior analyst at Kitco.com, said precious metals have benefited from the sharp drop in oil prices. That is bullish from a safe-haven perspective, given the plunge in crude oil prices and the extreme anxiety in the market. But the fall in crude prices also suggests that, more broadly, the commodity complex may be under some pressure.

Uncertainty over the opening of near-frozen economies and the possibility of a global recession could also support precious metals in the longer term, commodities experts said. “Given the current environment, the long-term outlook for precious metals remains bright, but the near-term weakness is likely,” Craig Erlam, senior market analyst at Oanda, wrote in a daily note.

Ilya Spivak, currency strategist at Dailyfx, points out, “at this point, the market has been siphoned off into liquid or risky assets, with the dollar, yen, treasuries on one side and other assets on the other, including gold and silver. So precious metals will be one of those assets that will be liquidated just as investors are worried that the recession will be significant and the damage to the economy will be more lasting.”

US President Donald trump tweeted on April 20 that he would sign an executive order temporarily barring immigrants from entering the us in the event of a coronavirus pandemic.

“Given the threat posed by an invisible enemy and the need to protect the jobs of great americans, I will sign an executive order temporarily halting immigration into the United States,” Mr Trump tweeted.

Affected by the relevant news, the dollar index to accelerate the short – term rise, since the day low has risen more than 30 points, the highest touched 100.24, still maintain an upward trend.

Technical analysis:

The dollar

On the daily chart, the dollar index rebounded in the consolidation, the MACD green momentum column slightly narrowed, the KDJ random index further higher, indicating that the dollar upward momentum is still alive, and then may resume a small rally.

On the 4 hour chart, the dollar index launched a modest rebound, the MACD red kinetic energy column unchanged, the KDJ random index moderately higher, indicating that the dollar will continue to moderate short – term rebound.

silver

On the daily chart, silver prices after high pressure fall, MACD red kinetic energy column slightly narrowed, KDJ random index further lower, indicating that silver retracement kinetic energy strengthened, silver prices to receive incoming materials to continue to withdraw soft.

On the 4-hour chart, silver price maintained a narrow range of pressure trading, the MACD red kinetic energy column unchanged, the KDJ random index turned lower, indicating that silver short – term downward momentum is still alive, and may continue to be under pressure.

fundamentals Positive factors :

  1. At least 782,159 cases of novel coronavirus infection, including 41,816 deaths, have been reported in the United States as of 6 p.m. et, according to the Johns Hopkins university real-time outbreak surveillance system.
  2. A lack of solidarity is fuelling the epidemic and “the worst is yet to come,” said world health organization (who) director-general Michel tandesay at a news conference in Geneva Monday. He said novel coronavirus was very dangerous, and he took advantage of differences between people, between parties and between countries, calling for “not to use this virus as an opportunity to fight each other or to score political points.”
  1. The us department of homeland security announced Wednesday that it would extend the “non-essential travel” restrictions on the us border with Canada and Mexico for another 30 days in response to a new outbreak.
  2. Protests against home segregation orders erupted across the United States on April 18, in Michigan, Ohio, Kentucky and Minnesota.

Fundamental negative factors:

Democrats and republicans disagreed Monday over who should be held responsible for the delay, as they worked out the details of a rescue plan that could exceed $450 billion.

  1. US President Donald Trump says the drop in oil prices is very short-lived. Now is a good time to buy crude, and hopefully, Congress will support it. Up to 75m barrels of oil are being studied for inclusion in the strategic petroleum reserve.
  2. March, April 16 U.S. President Donald Trump laid out guidelines for a three-stage state-to-state economic reboot, set testing standards that states must meet, and required rapid provision of protective gear to reopen. The governors of each state can carry out the guidelines according to the conditions of their own state, rather than relying on the orders of the federal government. The guidelines, titled “open America again,” have not yet been officially released, and Mr. Trump has distributed documents to state governors.
  1. US President Donald trump said on April 15 that the us had passed the “peak” of the coronavirus outbreak. On Thursday he will discuss guidelines for reopening the United States. Now trump has canceled plans to set up a new task force to revive the economy and instead has held a series of phone calls with business leaders, according to two sources.

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