Silver investment: under the epidemic, “helicopter money” mode continues! Precious metals will continue to be in demand!

Spot silver was trading around $15.070 an ounce on Thursday. Silver staged a modest rally throughout the day, trading in the $15.07 / oz area.

FED officials at their two emergency meetings last month became increasingly concerned that the coronavirus outbreak could quickly damage the us economy and disrupt financial markets, prompting them to take “forceful action”, according to newly released minutes of their meetings.

President Donald trump said on Wednesday that the United States may be reaching the top of a “curve” of a novel coronavirus outbreak and reiterated his hope for a U.S. economic reboot.

Market analysts point out that the money supply will increase as governments and the federal government prop up the economy with “helicopter money” and stimulus measures, creating a generally very favourable environment for precious metals.

Analysts at td securities said investors would continue to seek precious metals as monetary and fiscal stimulus flooded the market, while federal reserve interest rates stayed at zero and global real interest rates remained in negative territory.

Technical analysis:

The dollar

On the daily chart, the dollar index rebounded after a fall, MACD green momentum column unchanged, the KDJ random index moderately higher, indicating that the dollar rebound momentum is still alive, and may continue to rebound momentum.

On the 4-hour chart, the dollar index is under pressure and trading in a tight range, the MACD green momentum column unchanged, the KDJ random index moderately higher, indicating the dollar’s short-term momentum mixed, and then or continue to maintain a tight range for a period of time.

silver

On the daily chart, silver held the rally, the MACD red kinetic energy column held steady, and the KDJ random index was slightly under pressure, indicating that silver may continue to struggle to hold the moderate rally.

On the 4 hour chart, silver price moderate retreat after narrow trading, MACD green kinetic energy column unchanged, KDJ random index turned higher, indicating silver short term momentum mixed, then or continue to narrow consolidation for a period of time.

fundamentals Positive factors :

  1. According to statistics from real-time information and data update website worldometers, as of 10:19 Beijing time on April 9, there were over 430,000 confirmed COVID 19 cases in the United States, 434,927 cases, and over 14,000 deaths, reaching 14,788 cases.
  2. Fed officials at two emergency meetings last month became increasingly concerned that the coronavirus outbreak could quickly damage the U.S. economy and disrupt financial markets, prompting them to take “forceful action,” minutes of Wednesday’s fed meeting showed.
  3. Democratic senator Bernie sanders announced Thursday that he is withdrawing from the 2020 U.S. presidential race. That means former vice President Joe biden will challenge republican President Donald trump as the democratic candidate in the November election.
  4. British prime minister Boris Johnson’s condition is reported to have deteriorated and he has been transferred to intensive care unit. A spokesman for the prime minister said foreign secretary and first minister alvaro raab had been asked to act as acting prime minister if necessary.

Fundamental negative factors:

1.The number of daily increases in coronavirus infections in the United States has declined since Friday, according to data from Johns Hopkins university. Since then, the daily increase in cases worldwide has also declined. An influential model tracking the us coronavirus pandemic now predicts fewer deaths and fewer hospital beds than estimated last week.

  1. Anthony Fauci, President of the national institute of allergy and infectious diseases, told fox news on Wednesday that the number of coronavirus-related deaths in the United States is now lower than initially estimated, and noted that the situation should improve after this week. However, he added that efforts to deal with the virus should be strengthened.
  2. US President Donald Trump said on Tuesday that it is time to seriously consider restarting economic activity. We will restart the economy much sooner rather than later. It is happy to restart the economy now, but some places have been hit hard by the outbreak.
  3. The number of confirmed COVID-19 cases rose to 135,586 from 132,547 in Italy on Tuesday, with an increase of 604 to 17,127 deaths. The increase in covid-19 cases was the lowest since March 13.

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