Spot gold continued to come under pressure in early Asian trading on Monday, trading at around $1,683 an ounce. Gold tumbled nearly $30 on Friday, weighed down by a strong U.S. payrolls report. Investors will usher in the fed’s decision this week, market expectations the fed will keep interest rates unchanged, however, considering the latest non-agricultural data is strong, the fed may be relatively optimistic about the economic outlook, suggesting that will slow down the stimulus measures, if so, the price of gold may suffer further blow, and the dollar is expected to be strong. In terms of the global epidemic, the number of confirmed coVID-19 cases has exceeded 7.08 million globally and the number of confirmed cases in the US has exceeded 2 million. The protests triggered by the death of African man Floyd have continued to spread throughout the United States for several days. Mass gatherings of people provided a “new opportunity” for the spread of novel Coronavirus, which may lead to a second outbreak of epidemic in the United States.
Key U.S. data for investors to watch this week include Wednesday’s consumer price index for May, Thursday’s jobless claims and May PPI. Other countries will also release important economic data, including GDP, inflation and trade accounts. Investors will then learn more about the state of the global economy and whether the expected recovery has arrived. And inflation data will be an indicator of how central Banks, which use it as an important indicator, will react.
Spot gold fell nearly 2 per cent on Friday as stronger-than-expected US non-farm payrolls boosted hopes for a global economic recovery and reduced demand for safe-haven assets. Spot gold closed Friday at $1,685.23 an ounce, down $28.36, or 1.66 percent.
U.S. nonfarm payrolls unexpectedly jumped 2.509 million in May, the biggest monthly gain in U.S. history since at least 1939, labor Department data showed on Friday, with markets expecting an 8 million drop. The unemployment rate fell to 13.3% in May. That was a far cry from market expectations of about 8m job losses in May and an unemployment rate of about 20 per cent.
Will the Fed’s decision hit gold prices further?
The Federal Reserve holds a two-day policy meeting this week. To cushion the impact of the coronavirus pandemic, the Federal Reserve injected massive stimulus and cut interest rates to near zero.
The FEDERAL Open Market Committee will announce its interest rate decision at 02:00 Beijing time on Thursday. Federal Reserve Chairman Colin Powell will hold a press conference at 02:30 Beijing time on Thursday. Markets expect the Fed to keep interest rates near zero.
Federal Reserve Chairman Colin Powell, in his final speech before a quiet period at the Central bank, said a surge in coronavirus infections in the United States could hamper the economy’s recovery from the deep recession caused by the pandemic, although he reiterated the Central bank’s commitment to continue to act to combat the crisis.
Due to the latest U.S. jobs report is very strong, and enhance the people’s confidence in the economic recovery, has prompted some exchange abandon the bet on a negative interest rates, the fed’s decision this week could strengthen refuse negative signal, and may even release partial hawkish signals, which is expected to prop up the dollar, thus a hit to gold.
Adam Button, managing director of ForexLive, expects gold prices to fall this week. “One of the risks in gold trading this week is that the Fed stressed that the economy is not as bad as feared and hinted that it will slow its stimulus efforts, which will further push Treasury yields higher and curb short-term safe-haven demand,” said Adam Button.
Charlie Nedoss, senior market strategist at LaSalle Futures Group in New York, said further declines are possible in the short term after gold’s technical chart deteriorates.
Gold came under strong bearish pressure on Friday and broke below a key level of $1,691.10 an ounce, according to an article on Economies.com.
Gold prices closed below $1,691.10 an ounce on Friday, according to Economies.com, suggesting further bearish corrections are in the works. With gold closing below these levels, this confirms the opening of the way for a further downside target of $1,646.00 an ounce.
Analysts and traders are bearish on gold this week, according to the FX168 weekly financial Market survey released on Saturday. Among traders and analysts surveyed weekly by financial markets, 40 per cent are bullish on gold and 60 per cent are bearish.
Rhona O ‘Connell, head of market analysis for Forfour Europe, Middle East and Asia, told Kitco News on Friday: “The COVID-19 premium may already be priced in and US employment data will weigh on the gold market. All of this points to a risk environment, which is why gold is falling.”
Eureka Mining report editor Richard Baker said gold could fall to around $1,665 an ounce.
Chuck Tomes, portfolio manager at Manulife Asset Management, said after the non-farm payrolls data on Friday was better than expected and the market’s subsequent reaction was expectations of better U.S. economic growth and a steepening yield curve, both of which boosted the dollar.
The dollar index.DX rose 0.23 percent to close at 96.97 on Friday, boosted by a strong U.S. payrolls report.
The FX168 weekly financial market survey, released on Saturday, showed analysts and traders bullish on the dollar’s outlook for the week. Of the traders and analysts surveyed weekly by financial markets, 75 per cent were dollar bulls and 25 per cent were dollar bears.
European Central Bank President Christine Lagarde will address an online hearing of the European Parliament’s Economic and Monetary Affairs committee at 21:45 Beijing time on Monday.
Last Thursday, the European Central Bank (ECB) announced that it will expand its emergency debt purchase program (PEPP) by 600 billion euros to 1.35 trillion euros, extending the maturity of the program to the end of June 2021.
‘The economy is contracting at an unprecedented rate,’ European Central Bank President Christine Lagarde told a news conference after the meeting. The contraction in the second quarter will be unprecedented, with severe employment conditions and a loss of income leading to a decline in consumption. ‘The ECB will take appropriate, appropriate action,’ Ms. Lagarde said.
The euro jumped to a 12-week high against the dollar on Thursday as the European Central Bank stepped up stimulus measures to boost the coronavirus economy.
“This underlines the ECB’s commitment to strengthening the recovery,” said Jai Malhi, global market strategist at jpmorgan Asset Management in London. The eurozone is likely to emerge more quickly from the novel Coronavirus recession than the US and UK.”
Novel Coronavirus infections worldwide have exceeded 7.08 million cumulative confirmed cases in the United States of more than 2 million
According to the latest statistics, the cumulative number of confirmed cases of COVID-19 globally has exceeded 7.08 million. More than 200,000 people have been diagnosed in seven countries, including Brazil, Russia, Spain, the United Kingdom, India and Italy. The cumulative number of confirmed cases in the United States has passed 2 million.
The number of countries with more than 100,000 confirmed cases globally is 15, ranking most or least in the United States, Brazil, Russia, Spain, The United Kingdom, India, Italy, Peru, Germany, Iran, Turkey, France, Chile, Mexico and Saudi Arabia. The cumulative number of confirmed cases in Saudi Arabia has recently topped 100,000. The cumulative number of confirmed cases in Pakistan and Canada is now approaching 100,000.
According to world real-time world statistics, as of 8:02 am, June 8, Beijing time, the cumulative number of confirmed cases of COVID-19 worldwide has exceeded 7.08 million, reaching 7081,593, and the cumulative number of deaths has exceeded 405,074. The United States has the most cumulative confirmed cases of COVID-19 in the world, with more than 2 million cases to 2007,232 and more than 112,000 cumulative deaths to 112,469.
Protests over the death of an African-American man, George Floyd, by a white police officer in Minnesota have spread across the US for days, with riots and violent clashes. American health experts have repeatedly warned that mass demonstrations during an epidemic could create potentially clustered cases.
The Centers for Disease Control and Prevention said On Sunday it was monitoring demonstrations across the COUNTRY. There are fears that protests, like other rallies, could lead to more coronavirus transmission.
On June 4, local time, the United States centers for disease control and prevention director Robert Reid anfield was held in Washington in the day of a house hearing about coping COVID – 19 outbreak response, said although the President recently announced that it would trump end America’s relations with the world health organization, but the United States centers for disease control and prevention is still keep “work closely” with the world health organization.
Major epidemic in overseas countries, Worldometers world real-time statistics show that by the end of Beijing time on June 8, 02, Brazil’s new plan confirmed 691961 cases of lung, Russia has confirmed 467673 cases of accumulative total of 288630 cases of the patients in Spain, the UK has confirmed 286194 cases, India has confirmed 257506 cases, Italy has confirmed 234998 cases, confirmed 196515 cases of Peru, Germany has confirmed 185869 cases, Iran has confirmed 171789 cases, Turkey has confirmed 170132 cases, France has confirmed 153,977 cases, Chile 134,150, Mexico 113,619, Saudi Arabia 101,914, Pakistan 98,943 and Canada 95,698.
On June 5, the World Health Organization (WHO) issued updated guidelines on the use of masks to prevent the new coronavirus, giving updated advice on who should wear masks, when to wear them and what materials to use. Who Director-General Tedros Adhanom Ghebrezek said at a press conference that the who developed the guidelines after a careful review of all available evidence and extensive consultation with international experts and civil society groups.