The federal reserve and congress are staging a “perfect storm” of new measures to rescue the market. The latest news of the epidemic: the United States has more than 880,000 confirmed cases! Nearly 50,000 dead!

The dollar index.dxy rebounded slightly to trade around 100.60 in early trading on Friday (April 24) after falling sharply to near the 100-mark on Thursday. Spot gold retreated modestly, now trading around $1,723 an ounce. Gold has seen a recent rally, with prices rising more than $16 on Thursday, briefly approaching $1,740 an ounce. That followed a nearly $30 surge in gold prices on Wednesday. In a new move on Thursday, the federal reserve announced a temporary increase in the availability of intraday credit by supporting credit on a secured and unsecured basis. Separately, news that congress had passed a nearly $500 billion stimulus package helped fuel Thursday’s rally. In terms of the new outbreak, the global cumulative number of confirmed COVID 19 cases has exceeded 2.71 million and the cumulative number of deaths has exceeded 190,000. The United States has had more than 880,000 confirmed cases and nearly 50,000 deaths.

The federal reserve and congress rushed out new measures to rescue the market

The dollar index.dxy fell 46 points in 30 minutes to a low of 100.03 and lost 67 points from its session high before bouncing back to close at 100.51.

The fed is now reportedly considering buying state and local bonds. According to the Wall Street journal, it is likely to expand and deepen these programs. That boosted stocks and weighed on the dollar.

The fed is said to be considering extending the main street lending scheme to non-profit organisations and plans to expand the municipal lending scheme to more local governments.

Later in the day, the federal reserve said it had stepped up support for credit flows during the COVID 19 epidemic.

The federal reserve announced a temporary increase in the availability of intraday credit to support credit on a secured and unsecured basis.

The fed will “suspend unsecured intraday credit line limits (net debit limits) and waive overdraft fees for institutions that qualify for major credit programs”. The revised rules will remain in place until September 30, unless they are extended. “These actions will not significantly increase the credit risk faced by the federal reserve’s Banks,” the fed said in a statement.

In addition, the fed is seeking to expand as quickly as possible the pool of borrowers eligible for its pay guarantee liquidity facility (PPPLF).

As the federal reserve continues to offer stimulus, congress is not idle. Members of the U.S. house of representatives, meeting in Washington on Thursday, voted to pass a $484 billion novel coronavirus relief bill, including $310 billion for a payroll protection plan (PPP). That brings the total approved for the crisis to an unprecedented nearly $3 trillion. The bill will be sent to President trump for signature.

The PPP was proposed in the $349 billion $2 trillion fiscal stimulus package passed on March 26th. The U.S. government’s $349 billion small-business assistance loan program has run out of money, the small business administration said Tuesday, less than two weeks after it was launched on April 3.

The $484 billion aid bill is the fourth to address the coronavirus crisis. It funds small businesses and hospitals that are struggling with financial losses caused by novel coronavirus, which has killed more than 49,000 americans, left a record 26 million unemployed and wiped out all the jobs created during the longest jobs boom in U.S. history.

The house of representatives passed the bill by a vote of 388 to 5. Members of the house of representatives are meeting for the first time in weeks because of the coronavirus pandemic. Lawmakers, many of them wearing face masks, passed the bill during a lengthy vote. The voting process allowed them to keep public health recommendations at arm’s length.

The house of representatives has sent the White House the latest of four bailout bills that President trump has promised to sign into law soon.

On April 21, the U.S. senate voted to pass a $500 billion economic support package to help small businesses affected by the outbreak and hospitals that deal with large Numbers of seriously ill patients.

Gold in ‘perfect storm’

Gold rose as much as 1.5 per cent on Thursday to its highest in more than a week, buoyed by expectations of more us stimulus measures. Spot gold rose as high as $1,738.27 an ounce in Thursday trading to close at $1,730.50, up $16.02, or 0.93 percent.

According to an article on Economies.com, gold has risen further and is close to our first waiting target of $1,747.43 an ounce. Judging from the 4 hour chart, gold received continued support from EMA 50.

Economies.com said it is now waiting for gold to break through $1,747.43 an ounce to confirm it has opened the way for a further $1,780.00 target. Keeping gold above $1,678.45 an ounce is important for gold to continue its expected rally.

David Meger, director of metals trading at High Ridge Futures in New York, said gold was supported by the continuation of central bank stimulus measures around the world, particularly the U.S. vote on a $500 billion additional stimulus bill on Thursday.

Edward Moya, senior market analyst at brokerage firm OANDA, said in a note: “the unemployment rate appears to be on the verge of hitting the 20 percent level, which alone is enough to keep the fed and the trump administration pumping stimulus into the economy. Gold continued its climb to $1,800 an ounce. The stimulus is not going to go away any time soon, which should mean gold hitting a record high [in dollar terms] by the summer.”

Gold tends to benefit from broad stimulus from central Banks and governments because it is widely seen as a hedge against inflation and currency depreciation.

The SPDR Gold Trust, the world’s largest Gold exchange-traded fund, added 0.9 per cent to 1,042.46 tonnes on Wednesday, its highest level in almost seven years.

Initial claims for state unemployment benefits totaled 4.427 million last week, the labor department said on Thursday, compared with an expected 4.2 million. The previous reading was revised down to 5.237,000 from 5.245,000. Adding in the four previous reports, the number of americans claiming unemployment benefits in the past five weeks was 26.45 million.

“Gold may be a safer bet as weaker equity markets, negative real interest rates and continued fiscal and monetary stimulus should once again boost gold,” analysts at FXTM said in a note. We expect gold to break above the 2011 high of $1,925 in the coming months.”

Ronord-peter Stoeferle, managing partner at Incrementum AG and author of the In Gold We Trust report, said the Gold market was about to enter a new phase as central Banks and governments struggle to combat the global recession. Mr Stoeferle says there is still room for gold to rise.

Peter Schiff, chief executive of Euro Pacific Capital, a prominent gold bull, believes gold’s rally has only just begun.

“It’s the perfect storm for gold,” said Michael Matousek, chief trader at US Global Investors. Because of all this stimulus that’s being put in place, a steady stream of buyers is buying gold.”

Central Banks and governments are flooding financial markets with liquidity, which will push up inflationary pressures and gold prices, said Chantelle Schieven, head of research at Murenbeeld & Co. The research firm updated its forecast for this year, saying gold could breach $1,800 an ounce by the fourth quarter.

Schieven said in the long term, gold could top $2,000 an ounce by the end of next year.

More than 880,000 cases have been confirmed and nearly 50,000 deaths have been reported in the United States

According to the latest statistics, the global total number of COVID 19 cases has exceeded 2.71 million, and the total number of deaths has exceeded 190,000. At present, there have been seven countries in the world with a total of more than 100,000 confirmed cases, among which the United States is still the country with the largest number of confirmed cases in the world, with a total of more than 880,000 confirmed cases.

Worldometers world real-time statistics show that as of 9:13 PM Beijing time on April 24, global covid-19 cumulative confirmed cases of more than 2.71 million, to reach 2,718,139 cases, cumulative deaths of more than 190,000 cases, to 190,635 cases. The cumulative number of confirmed COVID 19 cases in the United States was the highest in the world, with more than 880,000 cases and 880204 cases. The cumulative number of deaths was close to 50,000 cases and 49,845 cases.

US President Donald trump said at a White House news conference on April 23 that his administration may extend its national social distance guidelines until early summer or later.

Asked if federal guidelines need to be extended at least until the start of the summer, Mr Trump said: “we may, we may go beyond that. I think it’s just common sense that people know. In a way, we don’t have to. But until we feel safe, we will extend it.” The guidelines were first published in mid-march and have been extended once and will expire at the end of April.

The White House guidelines are not legally binding on states, and many have implemented their own social distance rules. The White House has recommended strict limits on normal behavior, such as eating in restaurants and socializing in groups.

New York state has conducted a phase I novel coronavirus antibody test on 3,000 people at 40 locations in 19 counties and cities over two days, New York governor Andrew Cuomo said at a daily news conference on April 23. The results showed that 13.9% of the people tested positive for antibodies, i.e. infected with a novel coronavirus and produced antibodies.

The head of the centers for disease control and prevention, Robert Redfield, said on April 21 that the start of winter in the United States could usher in a second, more severe outbreak, with the overlap of the flu season and the new pandemic threatening “unimaginable” strains on the health care system. Redfield said governments at all levels should use the months to prepare, including improving their detection and monitoring capabilities.

Other major overseas countries, Spain COVID – 19 accumulative total of 213024 cases of the patients, Italy has confirmed 189973 cases, confirmed 158183 cases of France, and Germany has confirmed 151784 cases, the diagnosis of 138078 cases, Turkey has confirmed 101790 cases, Iran has confirmed 87026 cases, Russia has confirmed 62773 cases, Brazil has confirmed 49492 cases, Belgium has confirmed 42797 cases, Canada has confirmed 42110 cases, the Netherlands confirmed 35729 cases over the Swiss confirmed 28496 cases.

Data released by Italy’s civil protection agency on April 23 showed that 3,033 new cases were cured and 2,646 were confirmed. This is the first time since the outbreak began that the number of newly cured cases in Italy has exceeded the number of newly confirmed cases, indicating a further improvement.

In terms of the epidemic situation in China, from 0:00 to 24:00 on April 23, six new confirmed cases were reported in 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps, of which two were imported from abroad and four were from China (3 from heilongjiang province and 1 from guangdong province). No new deaths; Two new suspected cases were imported from abroad (2 from Shanghai).

By 24:00 on April 23, according to reports from 31 provinces (autonomous regions, municipalities directly under the central government) and Xinjiang production and construction corps, there were 915 confirmed cases (57 of them severe), a total of 77257 cured and discharged cases, a total of 4632 dead cases, a total of 82804 confirmed cases and 20 suspected cases. A total of 728,590 close contacts were traced, and 8,362 close contacts were still under medical observation.

On April 22, local time, the director-general of the world health organization (WHO) tan Desai said that the epidemic situation in most western European countries has been stable or has a trend of decline. Although there are few confirmed cases in Africa, central and South America, eastern Europe and other regions, the epidemic situation is on the rise, and most countries are still in the early stage of COVID 19 epidemic. Novel coronavirus will coexist with humans for a long time, and we still have a long way to go.

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