On Wednesday morning, the dollar index remained under pressure below the 99 mark, with spot gold around $1,725 an ounce. Gold surged nearly 2 percent to nearly $1,750 an ounce on Tuesday as the covid-19 outbreak and growing concerns about economic growth intensified. On Wednesday night, investors will be greeted by data on us retail sales, known as the “scare Numbers”, which are expected to set the market on fire. In terms of the global epidemic, the total number of confirmed covid-19 cases has exceeded 1.99 million and the total number of deaths has exceeded 126,000. With more than 610,000 confirmed COVID 19 cases and more than 25,000 deaths in the us, President Donald trump has announced that the us will suspend funding to the world health organization.
The “terror data” attacks on the dollar may be tested again
Investors are bracing for U.S. retail sales data for march at 20:30 GMT on Wednesday. The data, known as the “terror data”, is expected to trigger volatility in major assets.
U.S. retail sales will be a key focus this week as investors get their first look at the impact of a novel coronavirus shutdown on the retail sector.
The monthly rate of U.S. retail sales is expected to fall 8 percent in March from a 0.5 percent drop in the previous month, according to a leading media survey.
Analysts said the dollar index could come under further downward pressure if U.S. retail sales data performed poorly, which would be positive for gold.
On Tuesday, the dollar index under pressure downward, 99 lost. The dollar index.dxy closed down 0.6 percent at 98.88, after hitting an intraday low of 98.83.
Dollar buying sentiment will be tested this quarter as investors assess U.S. earnings and economic data. The dollar’s close this week is likely to be affected not only by corporate earnings, but also by the latest retail sales data and claims for jobless benefits.
If the outbreak leaves a lasting rift in the world’s largest economy, the dollar’s throne could be threatened as market participants seek the safety of the yen or Swiss franc.
“The danger now is that we could see more of a w-shaped recovery than a v-shaped recovery,” said Bart Melek, head of global strategy at td securities. In terms of a pandemic, we are certainly not out of the woods. We’re still going to get some negative data.”
Gold bulls prepare for a bigger burst
Spot gold prices surged nearly 2 per cent on Tuesday to their highest level since late 2012. Spot gold was near $1,725 an ounce in early Asian trading on Wednesday.
Gold week international spot rose as high as $1,746.40 an ounce in intraday trading to close at $1,726.48 an ounce, up $13.82, or 0.81 percent.
Analysts say investors have flocked to the safe-haven metal as the global economy has been devastated by a coronavirus that triggered a massive stimulus package.
The international monetary fund said on Tuesday that it expected the global economy to contract by 3 per cent in 2020, with a collapse in economic activity caused by coronavirus marking the worst recession since the Great Depression of the 1930s.
In its latest world economic outlook, the IMF said it expected the us economy to contract by 5.9 per cent this year and the eurozone economy to contract by 7.5 per cent. The economic situation will be particularly difficult in Italy and Spain, where gross domestic product will contract by 9.1 per cent and 8 per cent respectively.
An article on Economies.com, a leading financial website, said gold was more bullish and at one point was close to $1,750.00 an ounce, reinforcing expectations that gold would continue to rise within days and in the short term. Our next target for gold is $1,770.00 / oz.
To reach that bullish target, gold needs to stay above $1,703.25 an ounce, adds Economies.com.
“There was a lot of safe-haven buying,” said Bob Haberkorn, senior market strategist at RJO Futures. Now people are worried about recession and depression. The economic outlook looks pretty grim. The fed just issued $2 trillion last week, and other central banks around the world are doing the same; Interest rates are at or near zero, there is a lot of concern in the market and this is the perfect environment for gold to go above $2,000.”
Forexton analyst Rhona O ‘connell said in a report that forecasts of a global recession, coupled with rapid government money printing, had boosted the gold trade.
Kieran Clancy, assistant commodities economist at capital economics, said: “in terms of virus Numbers, many countries are a long way from their peak. This uncertainty will continue to be positive for gold.”
Edward Morse, global head of commodities at Citi Research, expects gold prices to reach $2,000 between 2020 and 2021.
Many analysts have been comparing gold trading patterns during the novel coronavirus crisis with those seen during the 2008 financial crisis, and expect prices to hit new highs. Scotiabank, a Canadian bank, has joined the ranks, estimating that the rally will surpass the bull market of 2009-12.
Hareesh V, head of commodities research at Geojit Financial Services, said: “gold has been on an upward trend for the past two to three weeks; “It was mainly a flight to safety, mainly because the global economy could be facing a recession because of COVID 19.”
Dennis Gartman, the “king of commodities”, said on Tuesday that central Banks had no choice but to remain expansionary, which was good for gold. With gold above $1,700, Mr. Gutman noted, the metal should “go a lot higher.”
More than 1.99 million covid-19 cases have been confirmed globally. In the United States, more than 610,000 cases have been confirmed. Trump announced that the United States will suspend funding to the who
According to the latest statistics, the global total number of COVID 19 cases has exceeded 1.99 million and the total number of deaths has exceeded 126,000. The cumulative number of confirmed COVID 19 cases in the United States exceeded 610,000 and the cumulative death toll exceeded 25,000.
Worldometers world real-time statistics show that as of 8:12 PM Beijing time on April 15, the global covid-19 cumulative confirmed cases of over 1.99 million, reached 1996,867, the cumulative number of deaths reached 126,537. The United States has the world’s largest number of cumulative confirmed COVID 19 cases, with more than 610,000 cases, reaching 613,235, and a total of 25,989 deaths.
US President Donald Trump announced at a White House press conference on April 14 that the us would suspend funding for the world health organization. Trump accused the world health organization of failing to share information on the outbreak, provide timely policy advice on prevention, and declare a “global pandemic”.
“Today, I directed my administration to halt funding to the world health organization while assessing who’s role in the gross mismanagement and cover-up of the spread of the coronavirus,” trump said at a news conference.
Mr. Trump criticized the who’s response to the outbreak, saying that “one of the most dangerous and costly decisions the who has ever made” was its opposition to travel restrictions. Fortunately, he said, he was not persuaded to issue a travel ban, thus saving countless lives.
Last week, trump for the first time threatened to withhold funding from the who, citing who’s criticism of his travel ban in the early days of a novel coronavirus outbreak.
US President Donald Trump on April 11 declared Wyoming a “state of major disaster” for the new outbreak. For the first time in U.S. history, all 50 states, Washington, d.c. and four overseas territories — the U.S. virgin islands, northern Mariana islands, Guam and Puerto Rico — are in a “major state of disaster.” Being granted a “major disaster status” would receive federal aid and allow local governments to exercise emergency powers to protect lives, property and public health after a disaster.
David Fauci, director of the national institute of allergy and infectious diseases and a member of the White House task force on the outbreak, said April 12 that more lives could have been saved if the government had acted early in the outbreak of COVID 19 in the United States.
Other major overseas countries, Spain COVID – 19 accumulative total of 172541 cases of the patients, Italy has confirmed 162488 cases, confirmed 143303 cases of France, and Germany has confirmed 131359 cases, the diagnosis of 93873 cases, Iran has confirmed 74877 cases, Turkey has confirmed 65111 cases, Belgium has confirmed 31119 cases, the Netherlands confirmed 27419 cases, Canada has confirmed 26897 cases, Switzerland has confirmed 25936 cases.
Covid-19 has a fatality rate 10 times higher than the 2009 H1N1 flu, and is more likely to spread in crowded environments, such as nursing homes, who director-general tandeser said on April 13. Cases are doubling every three or four days in some countries.
Who spokeswoman Margaret Harris told a news conference on April 14 that COVID-19 had not yet peaked.