The latest news on the situation between China and the US and across the Taiwan Straits! Gold briefly topped $1,910! ‘Scary data’ hits the market today!

Spot gold briefly traded above $1,910 an ounce in Asian trading on Friday after U.S. President Donald Trump agreed to seek a larger bailout package, encouraging gold bulls. In the latest update on the china-us situation, US Secretary of State Mike Pompeo has once again declared his desire to close all Confucius Institutes in the US. In addition, regarding the situation across the Taiwan Straits, PLA military aircraft appeared over Taiwan twice in 15 hours. On Friday evening Beijing time, investors will be greeted by us retail sales data, dubbed the “terror data”, which is expected to cause renewed market volatility.

U.S. President Donald Trump said on Thursday he agreed to seek a coVID-19 stimulus package larger than the $1.8 trillion proposed by the White House in order to reach a deal with House Democrats. Democrats are seeking a $2.2 trillion bailout.

Mr Trump said on Twitter on Thursday that he was “ready to sign” a stimulus bill and accused House Speaker Nancy Pelosi of dragging her feet.

On Thursday, Ms. Pelosi told many Democrats that a bipartisan stimulus deal would be hammered out without waiting until January. Pelosi said House Democrats would address the bailout needs if they could not reach a quick deal with the White House.

U.S. Treasury Secretary Steven Mnuchin had previously said it would be difficult to reach a stimulus deal before the November 3 election, but he said he would continue to work to reach an agreement with House Speaker Nancy Pelosi on coronavirus relief before the November 3 election.

“The focus is on the President’s continued push for a deal, raising renewed hopes for stimulus talks and the fact that gold has shrugged off the strength of the dollar,” said Edward Meir, analyst at ED&F Man Capital Markets.

Gold rose above $1,901.80 an ounce on Thursday, and if it stays above $1,901.80 and breaks $1,911.00 an ounce, it will push further higher, targeting $1,934.86, according to Economies.com.

The number of U.S. workers filing new jobless claims rose unexpectedly last week, further supporting gold prices. “The unemployment Numbers suggest that we are not out of the woods yet and that we still have a lot of headwinds to deal with, suggesting that more government intervention is likely through stimulus measures and curbs on interest rates,” said Jeffrey Sica, President and chief investment officer at Sica Wealth Management.

“No matter who wins the election, Democrat or Republican, we’re going to take stimulus measures,” says Bart Melek, head of commodity strategy at TD Securities.

George Gero, managing director of Wealth Management at ROYAL Bank of Canada, said gold investors remain on the sidelines as the number of coronavirus cases continues to rise, raising fears of a new blockade.

In the long run, Gero said, inflation will emerge and gold will benefit. “The depreciation of cash, huge debts, balance of payments data, weak employment data, coupled with political headlines and the usual global worries, are likely to lead to large-scale bargain-hunting by longer-term gold buyers,” he said. Gero said he expects gold prices to reach $2,000 by the end of the year.

Gold is seen as a hedge against inflation and currency depreciation. The price of gold has risen 25 per cent this year as the world has taken unprecedented stimulus measures to cushion the economic blow from the outbreak.

U.S. retail sales data for September will be released on Friday at 20:30 Beijing time. U.S. retail sales are expected to rise 0.8 percent in September, compared with a 0.6 percent rise, according to a media survey.

The survey also showed U.S. core retail sales are expected to rise 0.4 percent in September, down from 0.7 percent the previous month.

U.S. retail sales data are known as the “terror data” because they usually have a big impact on financial markets, and therefore are likely to have an impact on the direction of assets such as the dollar and gold.

In terms of Fed officials’ comments, New York Fed President William Williams and St. Louis Fed President James Bullard will address the session.

Eureka Mining report editor Richard Baker warned that gold volatility would remain high. “Gold will definitely experience volatility as the Congressional stimulus package seeks to strike a balance between the domestic novel Coronavirus and the reality of the presidential election,” Baker said.

In a telephone interview with Kitco News, George Milling-Stanley, chief gold strategist at State Street Global Advisors, said the uncertainty and market turmoil that drove gold to a record high in August have not gone away.

Mr Milling-stanley said investors needed to focus on the broader issues that dominate financial markets rather than the short-term volatility caused by Washington’s “on-again, off-again” stimulus negotiations.

Rising government debt, low interest rates and rising inflation expectations will continue to drive gold higher, he said. He added that gold could easily return to $2,000 an ounce by the end of 2021.

Pompeo has again threatened to close all Confucius Institutes across the country

On October 15, US Secretary of State Mike Pompeo said once again that he wanted to close all Confucius Institutes in the US.

In an interview with Indiana radio show “Good Morning News,” Pompeo said the Confucius Institute is “an important part of the global influence of the Chinese Communist Party” and reaches tens of thousands of American students every day, so it needs to be closed, according to a transcript posted on the STATE Department’s website Friday.

“We’re asking every high school, every K-12 school, every university to evaluate their Confucius classrooms and Confucius Institutes on campus, and we want to close them all,” Pompeo said.

Pompeo also noted that those who represent the Chinese Communist Party and participate in the operation of Confucius Institutes will not be able to enter U.S. classrooms through a visa.

The Chinese Foreign Ministry has repeatedly said that all Confucius Institutes in the US are voluntarily applied by US universities, and that Chinese and US universities cooperate on the principle of “mutual respect, friendly consultation, equality and mutual benefit”. The daily operation and management of these Confucius Institutes are lawful, compliant, open and transparent, and they have made important contributions to promoting people-to-people and cultural exchanges between China and the United States, which have been widely praised by all sides.

On September 1 local time, US Secretary of State Mike Pompeo also said that he hoped to close all Confucius Institute cultural centers on US university campuses by the end of this year.

“I think everybody sees the risk associated with them,” Pompeo said in an interview with Fox Business Network at the time. He accused the Chinese government-funded institutions of recruiting “spies and collaborators” at US universities. “My hope is that we can shut them all down by the end of the year,” pompeo said.

On August 13 local time, US Secretary of State Mike Pompeo announced that Confucius Institute CENTERS in the US are required to register as “foreign missions”. In a statement at the time, Pompeo called the Washington-based Confucius Institute American Center “an entity that promotes Beijing’s global advocacy and malign influence activities on U.S. campuses and primary and secondary classrooms.”

In response, Chinese Foreign Ministry spokesman Zhao Lijian stressed that the US move was demonizing and stigmatizing the normal operation of China-Us cooperation projects. China expresses strong dissatisfaction and firm opposition to this.

This is not the first time for the US side to designate a Chinese agency as a “foreign mission”. In February and June this year, the US State Department designated nine Chinese media outlets as “foreign missions” in two batches. Under the Foreign Missions Act, once registered as a “foreign Mission,” you must report to the State Department the names of all staff members and their properties.

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