A sudden surge! Gold bulls accelerate up! Trade situation back in focus! Watch out for sudden changes in the wind causing a huge market quake!

International spot gold traded at $1710.00 an ounce in early Asian trading on Monday. Gold prices fell sharply in the previous session, hitting as low as $1,700.65 an ounce. Gold has suddenly accelerated in the current session, trading at $1,710 an ounce. Meanwhile, spot silver rose more than 1 percent to $15.60 an ounce on the day.

The international spot gold sub-market rose as high as $1,723.20 to $1,700.03 to close at $1,701.18, down $13.98, or 0.82%, to $2.06, or 0.12%, for the week.

Meanwhile, June gold futures ended down 0.7 percent at $1,713.90 an ounce, up 0.8 percent for the week.

Gold fell after hitting a near two-week high on Friday as the economy gradually restarted to improve investors’ appetite for risk. Investors are increasingly hopeful the economy will restart after a novel coronavirus blockade, but a sustained wave of central bank stimulus measures is still expected to send gold prices higher ona weekly basis.

The U.S. job market was hit by an unprecedented economic shutdown caused by a novel coronavirus in April, according to labor department data released on Friday. The unemployment rate soared to a record high of 14.7 percent.

Both figures easily broke post-world war ii records, reflecting the enormous damage done in the fight against the virus. It took a decade to bring the unemployment rate down from 10.2 per cent to 4.4 per cent, and then it hit 14.7 per cent in a month.

Chris Rupkey, chief financial economist at bank of mitsubishi ufj in New York, said, “the gloomy economic data painted a pretty bleak picture, but the job losses could be as far back as April as the economy starts to restart. If there was a silver lining to the dismal jobs report, it was the realization that the economy couldn’t get any worse. “

The us economy as a whole suffered its sharpest monthly decline in employment since the great depression, in the clearest sign yet that novel coronavirus is hitting the world’s largest economy.

David Meger, director of metals trading at High Ridge Futures, said: “while the employment Numbers are clearly stunning, and this is the worst employment number the us has ever seen, behind the Numbers we are seeing a little bit of optimism as the us economy slowly recovers.”

The latest batch of us economic data has boosted expectations of more stimulus from the fed and markets are already pricing in the possibility of negative interest rates. Lower U.S. interest rates put pressure on the dollar and Treasury yields, but increase the appeal of non-yielding gold.

Economic advisers to Donald trump say working in the White House is risky

In terms of epidemic situation, Worldometers world real-time statistics show that up to now, the global total number of confirmed covid-19 cases has reached 4174,576, and the total number of deaths has reached 283,598. A total of 1365357 confirmed covid-19 cases and 80719 deaths have been reported in the United States.

Kevin hassett, chairman of the White House council of economic advisers, said in an interview Tuesday that he believes it is risky to work at the White House during the covid-19 outbreak and that it is safer to work from home. He had tested negative for the virus several times before. An aide to U.S. vice President mike pence has confirmed the diagnosis of covid-19, and several key officials are being quarantined for contact with the patient.

Us vice President mike pence has no plans to quarantine himself after his press secretary tested positive for a novel coronavirus, his spokesman said Monday, CNN reported. Mike pence’s spokesman, mike o ‘malley, said the vice President “will continue to follow the advice of the White House medical team and not quarantine.” Every day, burns tested negative for novel coronavirus, he said.

Us vice-president mike pence has tested negative for a novel coronavirus, US President Donald trump said. Novel coronavirus could disappear without a vaccine, he said, and states would be prepared if the number of infections surged again. There is no rush to draw up the next aid package.

Eleven secret service agents tested positive for novel coronavirus, the hill reported. Another 23 secret service personnel have recovered from the virus, according to homeland security documents. Another 60 employees are said to be in self-quarantine. It is not clear if anyone has worked at the White House recently or been in contact with Mr. Trump and Mr. Pence. A secret service spokesman said the agency would not disclose how many people had tested positive for novel coronavirus or how many employees had been quarantined or were currently quarantined because of privacy and workplace security concerns.

In addition, the sino-us trade situation has returned to the market focus, warning that new news may trigger sudden changes in market winds, which may trigger sharp fluctuations in the financial market.

On the morning of May 8, liu he, a member of the political bureau of the CPC central committee, vice-premier of the state council and Chinese leader of the china-us comprehensive economic dialogue, spoke with U.S. trade representative Robert lighthizer and Treasury secretary Steven mnuchin at request. The two sides indicated that they should strengthen cooperation on macro-economy and public health, strive to create a favorable atmosphere and conditions for the implementation of the first stage economic and trade agreement between China and the United States, and push for positive results. The two sides agreed to maintain communication and coordination.

Golden aftermarket outlook

Chris Weston, director of research at Pepperstone, said gold has reasons to rise in the face of global fiscal deficits, currency depreciation, negative interest rate bonds and inflation, with $1,738 an ounce the next key level to watch.

The gold market, which has been in the $1,738 to $1,678 range since mid-april, is facing a very interesting phase. If the gold price can effectively break through the $1,738 level, then investor interest will increase significantly, and the previous trend will continue.

“There is a lot of uncertainty about whether these jobs will come back,” said Sean Lusk, co-head of commercial hedging at Walsh Trading. Some won’t, and hopefully, most of them will come back.” “I think it’s just a matter of time before it gets to at least $1,750,” he said.

Richard Baker, the editor of the Eureka mining report, is among those expecting further gains. He said that while 20.5 million jobs were lost in April, better than the 21.5 million expected, recent trade tensions between China and the U.S. appear to have abated. Novel coronavirus infections around the world have weakened demand for physical gold in China and India, and some central banks (such as Russia) have slowed the scale of their new purchases. Investors seeking safe havens have filled the void. That makes gold more sensitive to swings in the stock market. Looking ahead, gold’s volatility should continue. “Gold is expected to move above $1,750 in the coming week and silver above $16 an ounce.”

Daniel Pavilions, the senior commodities broker at RJO Futures, expects a pullback in the near term, though he doesn’t think the long-term rally is over yet. “Gold futures fell below $1,700 an ounce several times and then bounced back above $1,700,” he said. But each time, gold has tended to hit a lower high. Technically, the trend appears to be abating. I don’t think the rebound is over yet. Over time, I think gold will go up. But I think it will pause and fall for a while.”

Phillip Streible, the chief market strategist at Blue Line Futures in Greenwich, Connecticut, said he is now neutral and gold is at a “crossroads.” The direction of gold prices will depend on how certain factors play out. If interest rates do fall below zero, you might see a rush into gold. Negative rates could mean a sell-off in the dollar index. This tends to support gold because they tend to have an inverse relationship. However, if investors continue to shrug off the current dire economic situation and pile into U.S. stocks, gold futures will weaken, likely holding above $1,700 an ounce.

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