Spot silver traded at $17.957 an ounce in Asia. Intraday gold extended a modest rally to a high of $18.033 an ounce before retreating slightly from that point, temporarily limited to just below the $18 mark.
Silver T+D rose 8 yuan/kg, or 0.19%, to close at 4,238 yuan/kg on Wednesday, with the highest bid at 4,258 yuan/kg and the lowest bid at 4,203 yuan/kg.
International spot silver, meanwhile, rose 18 cents, or 0.41 percent, to close at $17.81 an ounce after dipping as low as $17.71 and rising as high as $18.03 to close at $17.98.
Despite the formal signing of the first phase of the trade agreement, investors still have some concerns about the future of trade. With most of the details already known to the market, investors expect some hurdles in the second phase of the signing process. Meanwhile, the situation in the Middle East is still a “time bomb”, the market is still skating on thin ice, buying precious metals as a safe haven is understandable. Meanwhile, unexpected news from Russian politics overnight briefly raised the risk aversion of the market, with prime minister Dmitry Medvedev announcing the resignation of the entire Russian government and President Vladimir Putin signing the resignation of the government, which briefly caught investors off guard. Precious metals in the combined forces of multiple factors to maintain strong toughness, still maintain the momentum of the rebound shock.
Market analysts said precious metals rose instead of falling as the us-china trade deal was formally signed because it was already priced in the market.
The focus will then shift to the second phase of the economic and trade agreement, which U.S. Treasury Secretary Steven Munchin said is likely to focus on technology and cybersecurity, which has long been a sticking point between the two major economies.
From a technical point of view, the daily chart shows that the overall silver price shows a trend of concussion retracting, the MACD green kinetic energy column remains unchanged, and the KDJ random index is slightly flat, indicating that silver kinetic energy is mixed and may be trapped in a period of narrow consolidation.
On the 4-hour chart, silver showed a moderate rebound, with the MACD red momentum column expanding slightly, and the KDJ random index maintained its upward momentum, indicating that silver may continue to maintain a moderate rally in the short term.
Fundamental negative factors:
Liu He, a member of the political bureau of the communist party of China central committee, vice-premier of the state council and Chinese leader of the comprehensive economic dialogue between China and the United States, and US President Donald Trump officially signed the first stage of china-us economic and trade agreement. U.S. Treasury Secretary Steven Munchin said the trade deal would boost economic growth by 50 to 75 basis points.
The U.S. consumer price index (CPI), released on Tuesday, rose at a 2.3% annual rate in December, the highest since October 2018, up 2.1% from a year earlier but below expectations of 2.4%. Us consumer prices rose slightly in December and underlying monthly inflation pressures eased, agency comments said.
- The US Treasury Department released its semi-annual report on its currency policy on Monday (January 13), lifting its designation of China as a “currency manipulator”. The report also said continued dollar strength was “worrisome” on the basis that the IMF judged the dollar to be “overvalued” on a basis of real efficiency.
White House national security adviser Robert O ‘Brien told Axios on Monday that Washington wants to get talks with Pyongyang “back on track” and implement north Korean leader Kim Jong-un’s “commitment” to the denuclearization of the Korean peninsula.
Fundamentals favorable factors:
Nancy Pelosi, the speaker of the US house of representatives, has signed the latest articles of impeachment against Donald Trump. Articles of impeachment are expected to be “escorted” to the Senate by seven house impeachment managers.
The U.S. producer price index, released on Wednesday, rose to an annual rate of 1.3 percent in December, up from 1.1 percent but below expectations.
- According to the New York times, U.S. forces have resumed joint operations with Iraq, despite the Iraqi parliament’s vote in favor of a U.S. withdrawal.
Russian President Vladimir Putin has signed the government’s resignation. Russian President Vladimir Putin has nominated federal tax chief Mishustin as prime minister, according to the Interfax news agency.