Xiaogan into the country’s second diagnosis broke two thousand cities! Both gold and silver ended Thursday night higher

Shanghai gold exchange gold T+D closed 0.64 percent higher at 351.54 yuan per gram late Thursday. Shanghai gold exchange gold T+D closed down 1.66 yuan, or 0.47 percent, at 349.64 yuan per gram on Thursday, with the highest bid of 350.29 yuan per gram and the lowest of 348.00 yuan per gram. Spot gold opened at $1,555.88 an ounce in early Asian trading on Thursday, dipping as low as $1,551.96 and rising as high as $1,568.01 to close at $1,566.41, up to $10.66 or 0.68 percent.

Shanghai gold exchange silver T+D closed 0.50 percent higher at 4,261.00 yuan/kg late Thursday. Shanghai gold exchange silver T+D closed down 1 yuan, or 0.02 percent, at 4,243.00 yuan per kilogram on Thursday, with the highest bid at 4,250 yuan per kilogram and the lowest at 4,230 yuan per kilogram. International spot silver started Thursday morning at $17.61 an ounce, dipping as low as $17.57 and rising as high as $17.87 to close at $17.81, up 23 cents, or 1.29 percent.

Gold prices rose on Thursday on expectations that central Banks will keep interest rates low and as uncertainty about the economic impact of the coronavirus outbreak intensified demand for the precious metal.

COMEX gold for April delivery closed up $7.20, or 0.46 percent, at $1570.0 an ounce.

“Investors are building up gold positions in anticipation of more quantitative easing programmes from central Banks and lower interest rates,” said Bob Haberkorn, senior market strategist at RJO Futures.

Lower interest rates reduce the opportunity cost of holding unyielding gold.

The number of people in mainland China who have died from pneumonia has jumped to 563, as experts step up efforts to combat the virus. The outbreak has closed Chinese cities and forced thousands of people around the world to be quarantined.

From 0:00 to 24:00 on February 6, 2020, there were 2,447 new cases of pneumonia caused by the new coronavirus in hubei province. By 24:00 on February 6, 2020, a total of 22,112 pneumonia cases of new coronavirus infections had been reported in hubei province.

The world health organization on Wednesday played down reports that a “breakthrough” drug had been found to treat infected people.

“The more central banks, especially the people’s Bank of China, act to prop up the market to offset the impact of the coronavirus, the more it will help gold prices,” Haberkorn added.

China said it would halve additional tariffs on US goods and had approved increases in government spending, tax cuts and subsidies for virus-affected industries.

Gold rose despite record highs for U.S. stocks, a stronger dollar and better-than-expected U.S. jobless claims data last week.

George Gero, managing director of RBC Wealth Management, said in a report that despite the rise in stocks or the dollar, “you can’t exclude gold” even in China given the global economic slowdown, which will keep “interest rates moderate everywhere investors can see.”

For further market direction, investors are focused on Friday’s U.S. non-farm payrolls report.

“Technically, gold bulls have an overall short-term technical advantage and have been working to stabilize the market later this week,” Jim Wyckoff, senior analyst at Kitco Metals, said in a note.

Fundamentals of positive factors

  1. According to the hubei provincial health and fitness commission, from 0:00 to 24:00 on February 6, 2020, there were 2,447 new cases of pneumonia caused by the new coronavirus in hubei province. By 24:00 on February 6, 2020, a total of 22,112 pneumonia cases of new coronavirus infections had been reported in hubei province.

2. Data released on Monday showed the monthly rate of U.S. construction spending fell by 0.2 percent in December from an expected 0.5 percent to 0.6 percent. U.S. construction spending unexpectedly fell in December, the first decline since June, as an investment in both private and public projects fell. For all of 2019, U.S. construction spending fell 0.3 percent, the first decline since 2011.

3.U.S. GDP grew 2.1% in the fourth quarter, the same as in the third quarter, and in line with the expectations of economists surveyed by dow Jones. Still, preliminary estimates released by the Commerce Department on Thursday showed the economy expanding at 2.3 percent for the full year, down from 2.9 percent in 2018 and 2.4 percent in 2017, Mr. Trump’s first year in office.

4.U.S. jobless claims for the week ended January 25, released on Thursday, were revised to 223,000 from 211,000, with 216,000 expected.

5.The federal reserve left interest rates unchanged as expected on Wednesday (January 29), offering no new guidance on its balance sheet, but Powell noted that “uncertainties remain in the outlook, including those caused by the new coronavirus.” As fed chairman colin Powell’s remarks continued, traders raised their bets that the central bank would ease policy in 2020. A rate cut would put downward pressure on the dollar index, and gold is expected to get a boost.

Fundamentals negative factors

  1. The number of Americans filing new claims for jobless benefits fell to a nine-month low on Thursday, falling to 202,000 in the week ended February 1. The data showed that a tight labor market will continue to support the U.S. economy this year.

2. The U.S. Senate on Wednesday voted down two articles of impeachment accusing President Donald Trump of abusing his power and obstructing Congress. Trump was not convicted, meaning he will not be removed from office. Mr. Trump became only the third President in US history to be exonerated by the senate and remain in office.

3. The job market kicked off 2020 in an ambitious way, with the private sector adding 291,000 jobs, the biggest monthly gain since May 2015, according to a report released Wednesday by ADP and moody’s analytics.

4. The US trade deficit fell 1.7 percent last year to $616.8bn, the first decline since 2013, the Commerce Department said on Wednesday. Critics point out that the US trade deficit fell in 2019 for the first time in six years. Despite the slowdown in consumer spending, it helped keep the U.S. economy growing modestly in the fourth quarter.

5.The institute for supply management said on Wednesday its index of U.S. non-manufacturing activity rose to 55.5 in January, the highest since August, from a forecast of 55.0.

6.Data released on Tuesday showed U.S. factory orders rose at a 1.8 percent monthly rate in December and were expected to rise 1.2 percent, revised from a 0.7 percent decline.

7.The institute for supply management said on Monday that its manufacturing PMI rose to 50.9 in January, the highest since July, from 47.8 in December. A reading above 50 indicates expansion in manufacturing, which accounts for 11 percent of the U.S. economy. The ISM index has been below 50 for five straight months. Analysts surveyed had expected the index to rise to 48.5 in January from 47.2 in December.

Leave a Reply

Your email address will not be published. Required fields are marked *