Spot silver settled near $17.40 in Asian trading on Friday after a three-day rally, with concerns about the impact of the us-china trade situation on market sentiment.
Silver edged up to as high as $17.50, after hitting a high of $17.63, the biggest hurdle.
Worldometers world real-time statistics show that as of 12:00 on May 29, Beijing time, the global total number of confirmed covid-19 cases exceeded 5.9 million, reaching 5,906,202, and the total number of deaths exceeded 362,024, amounting to more than 360,000.
Among them, the United States has more than 1.76 million confirmed cases of covid-19, reaching 1,768,461 cases, and more than 100,000 deaths, reaching 103,330 cases. Both confirmed cases and deaths are the largest in the world.
In addition to the focus on the epidemic and the situation in China and the U.S., investors are also taking note of the latest incident between the U.S. and north Korea.
On Thursday, the U.S. justice department accused north Korean state Banks of evading U.S. sanctions laws and charged 28 north koreans and five Chinese citizens with illegally transferring $2.5 billion to the north Korean regime for its nuclear weapons development program through a network of mirror companies that bypassed U.S. sanctions.
According to the indictment, about 250 mirror companies involved in the above activities, including Thailand, Libya, Austria, Russia, China, Kuwait and other countries, are suspected of using international Banks to circumvent sanctions against north Korea, trade goods with north Korea, and help north Korea obtain needed materials and make profits at the same time.
The 33 defendants include executives at north Korea’s state-run Foreign Trade Bank. In 2013, the bank was added to the Treasury Department’s list of sanctions agencies because its transactions promoted nuclear proliferation and severed ties with the U.S. financial system.
The United Nations security council added the bank to its sanctions list in 2017. North Korea has been under u.n. sanctions since 2006. Over the years, the security council has tightened sanctions to try to cut off funding for north Korea’s nuclear and ballistic missile programs.
The justice department charged the 33 defendants with conspiracy, bank fraud, international money laundering and violations of the international emergency economic powers act. Many of those indicted are bank employees, including two former presidents and two former vice presidents of north Korea’s foreign trade bank. One of the bank officials also worked for north Korea’s main intelligence agency. The north Korean foreign trade bank was involved in the transfer of large amounts of money to help Kim jong UN’s regime continue its nuclear weapons development activities.
A U.S. official says part of the $2.5 billion is for north Korea’s nuclear and ballistic missile programs.
According to media analysis, the U.S. government has brought very few cases against north Korean individuals, especially senior government officials, and the case could be the largest criminal enforcement action against north Korea ever undertaken by the U.S. government.
The indictment further soured relations between the United States and north Korea. Friction between the two countries has been growing since U.S. President Donald trump and north Korean leader Kim jong UN stalled nuclear disarmament talks.
“With this indictment, the United States demonstrates its determination to prevent north Korea’s ability to gain illegal access to U.S. financial channels and to limit its ability to use illegal actions to gain proceeds to enhance its activities related to illicit weapons of mass destruction and ballistic missile programs,” Michael Sherwin, U.S. attorney for the district of Columbia, said in a statement.
On the daily chart, the dollar index continues to hover low after three days of losses and is now trading around 98.35, testing the key 200-day moving average, which could face a sharp sell-off if it falls below that level. On a technical level, the MACD green kinetic energy column gradually expanded and the KDJ stochastic index hit oversold levels downward, suggesting dollar shorts continued to gain momentum.
On the 4-hour chart, the usd index has formed a series of downward highs and lows, and its downward trend has been confirmed. The focus is on whether it can hold the key 98 level. The MACD green momentum column held steady, while the KDJ stochastic gauge hit oversold levels down, indicating strong dollar short momentum that the short term may attempt to stabilize.
On the daily chart, silver in three consecutive days of gains after the high consolidation, the trend shows a pattern of shock and climb, now focus on the key resistance can break through $17.63. The MACD red kinetic energy column gradually weakened and the KDJ stochastic index hit an overbought level, suggesting silver bull momentum weakened and a pullback could unfold.
On the four-hour chart, silver appears to be forming rising highs and lows, with the focus now on whether the rally can continue. The MACD red kinetic energy column was weaker, while the KDJ stochastic was trading just below the overbought level, indicating silver bulls were weak and the rally could stall on previous resistance.
Fundamental positive factors:
- Worldometers world real-time statistics show that, as of 12:00 on May 29, Beijing time, the global total number of confirmed covid-19 cases exceeded 5.9 million, reaching 5,906,202, and the total number of deaths exceeded 362,024, exceeding 360,000.
- US President Donald trump said on Thursday that he would hold a press conference on China on Friday.
- US President Donald trump signed an executive order against social media companies on Thursday, days after twitter said two of his tweets were “potentially misleading”. The bill seeks to weaken the influence of large social media platforms by reinterpreting a key 1996 law.
- The revised annualized quarterly rate of real GDP in the first quarter of the United States was -5.0%, and both the expected and the previous values were -4.8%.
Fundamental negative factors:
- On Thursday, the s&p 500 remained well above the lows it hit in March as business activity resumed after a weeks-long shutdown and hopes for a strong recovery were raised by massive stimulus measures to support the economy.
- The Japanese government announced on Wednesday that it will pass a second supplementary budget for 2020, which will see the Abe administration spend more than 234 trillion yen on fighting the epidemic and promoting economic recovery.
- The European commission on Wednesday unveiled a 750 billion euro ($826.5 billion) recovery fund as the region faces its worst economic crisis since the 1930s.
- Novavax, the us biotechnology company, said on Monday that it had begun the first human study of its experimental coronavirus vaccine.