Financial markets were volatile in early Asian trading on Tuesday, with U.S. stock futures and Asian and Pacific stock markets rising sharply, while gold prices surged above $1,580 an ounce, up more than $25 on the day. The dollar index fell sharply, losing 102 points and dropping more than 80 points on the day.
On Monday, the federal reserve took aggressive new steps to deal with the impact of the coronavirus outbreak on the economy, which boosted investor sentiment, and spot gold rallied sharply. The fed said it would begin providing unprecedented credit support to households, small businesses, and major employers to offset the “severe disruption” caused by the coronavirus outbreak.
Spot gold closed Monday at $1553.55 an ounce, up $55.59, or 3.71 percent. In early Asian trading on Tuesday, gold extended its rally to above $1,580 an ounce for the first time since March 13, hitting as high as $1,581.64.
The dollar index.dxy fell sharply, hitting a low of 101.64, down more than 80 points on the day.
Seoul composite index futures rise triggers circuit breakers. Futures on Japan’s TSE REIT index rose, triggering a circuit breaker. U.S. stock futures continued to rise, with s&p 500 futures up more than 3 percent.
Hong Kong shares opened sharply higher, with the hang Seng index up 3.7 percent. The Shanghai composite index rose 1.61 percent, the Shenzhen composite index gained 2.15 percent, the chinext index gained 2.3 percent and gold was up broadly.
Futures opened, Shanghai gold, Shanghai silver trading limit, Shanghai crude oil up 7.5%.
Having already eased monetary policy sharply this month, including cutting interest rates to near zero, the fed said it would set up new programs backed by student loans, credit card loans and U.S. government-backed loans to small businesses and buy bonds from large corporations.
Bob Haberkorn, the market strategist at RJO Futures, said the expectation that the United States would provide more stimulus in addition to what the fed has already done is an important reason for gold to rally ahead.
Tai Wong, head of fundamental and precious metals derivatives trading at BMO, said: “the fed has launched its biggest cannon yet, bigger even than during the big financial crisis. Markets reacted immediately, with stocks and gold rising sharply on the back of the fed’s new ‘Draghi’ move. The acid test, however, is whether this optimism lasts more than a day.”
Gold prices have fallen nearly 2 percent so far this month as the market rout has prompted investors to sell to meet margin calls and hold money in cash.
“When so much money is often wiped out of equities, the gap has to be closed somehow, and gold remains the best bet,” wrote OANDA analyst Craig Erlam in a report. So far, $1,450 an ounce has provided a floor.”
FXTM research analyst Lukman Otunuga wrote on Monday that gold could go higher if it closes above $1,545 an ounce. That should push gold back toward $1,600 an ounce in the medium term.
Kshitij Consultancy Service had expected gold to rebound towards $1,580 an ounce in the short term.
According to a recent article on Economies.com, gold rebounded strongly, breaking above $1509.00 an ounce, then further breached its first bullish target of $1543.35.
In the view of Economies.com, further strength is expected after gold breaches $1,571.20 an ounce and stays there.
There have been more than 370,000 confirmed COVID 19 cases worldwide and more than 40,000 confirmed cases in the United States
According to real-time statistics released by Johns Hopkins University in the United States, as of 7 am Beijing time, there were more than 370,000 confirmed covid-19 cases worldwide, reaching 375,458.
A novel coronavirus outbreak that has spread to almost every country in the world is accelerating, with more than 350,000 cases and more than 15,000 deaths worldwide, the world health organization said on Monday. Cases of COVID-19 have been reported in 189 countries.
“The pandemic is accelerating, from the first reported case, it took 67 days to reach 100,000 cases, 11 days to reach the second 100,000 cases and four days to reach the third 100,000 cases,” who director-general rodern tandse told a news conference at who headquarters in Geneva.
Outside the United States hard-hit countries, comprehensive foreign media reports, and data statistics, as of Beijing time on March 24th July, Italy COVID – 19 accumulative total of 63927 cases of the patients, accumulative total 35136 cases confirmed in Spain, Germany has confirmed 29056 cases, Iran has confirmed 23049 cases, confirmed 19856 cases of France, and South Korea has confirmed 8961 cases, Switzerland has confirmed 8795 cases; A total of 6,650 cases have been confirmed in the UK.
In recent days, COVID 19 epidemic in the United States has been rapidly escalating. According to the latest statistics, more than 10,000 new cases have been confirmed in the United States in the past 24 hours, and the total number of confirmed cases has exceeded 40,000.
A total of 43,667 confirmed covid-19 cases and 552 deaths were reported in the United States as of 7 a.m. Beijing time on March 24, according to Johns Hopkins University. The United States now has the third-highest number of confirmed cases in the world, after China and Italy.
A total of 313,000 people have tested for novel coronavirus, and 41,000 have tested positive for the virus, vice President mike pence said at an outbreak briefing Monday, fox news reported.
US President Donald Trump has previously declared New York, California and Washington state “major disaster areas” for COVID 19. Mr. Trump announced that he would deploy the federal national guard to help fight the outbreak in areas hard hit by the outbreak, including Washington state, California and New York.
Mr. Trump said the region had been moving into a major disaster zone, allowing the federal government to provide more intensive assistance to those states.
On March 23, Thomas Bossert, a former assistant to the President of the United States for homeland security and counterterrorism, warned that the United States could soon have the highest number of confirmed COVID 19 cases in the world.
He says now that the number of confirmed cases has shown that the United States could soon become the world’s country with the most novel coronavirus cases.
Bossert wrote on twitter: “sadly, the Numbers now suggest the us is on the verge of taking the lead in confirmed COVID 19 cases. It could very well be the world’s number one within a week.”