Spot gold briefly broke through the 1640 mark early in Asian trading on Wednesday before falling back soon after, trading around $1605 and falling more than $30 on the day.
Gold bull strength erupted last day, gold prices rose nearly 70 dollars at one point, one shot through the key 1600 level, hit a high of 1635 dollars, more than 4 percent on the day.
Stocks surged across the board Tuesday, with the dow jones industrial average soaring, Posting its biggest one-day percentage gain since 1933.
By the close, the dow jones industrial average was up 11.37% at 20,704.91; The s&p 500 jumped 9.38% to 2,447.33. The nasdaq gained 8.12 percent to 7,417.86.
In the news, senior Democrats and Republicans said Tuesday they were close to a deal on a $2 trillion economic stimulus bill that would provide financial aid to unemployed Americans and help struggling industries.
“I think we are very close to an agreement,” said Treasury Secretary Steven mnuchin, the top Republican negotiator. Again, I won’t go into details. We are very close. We are working on those issues.”
In addition, CNBC, quoted sources as saying that the President and vice President Mr. Burns trump one day with a number of important investors held a conference call on Wall Street, they COVID – 19 outbreak impact on the U.S. economy and market issues such as how to move to the epidemic of are discussed, they concluded a consensus after the meeting, including: not allowed to America’s economic collapse, causing the outbreak will be coronavirus not permanent existence and enterprises should take more complete resistance to disease of move and so on.
Investors also took comfort from President Donald trump’s announcement on Monday that he was considering how to resume some business activity after a 15-day shutdown ends next week.
It is worth noting, however, that the number of confirmed cases in the United States is growing rapidly and could become the center of a new outbreak. According to real-time statistics released by Johns Hopkins university in the United States, as of around 7 am Beijing time on March 25, a total of 53,268 confirmed cases and 696 deaths of covid-19 were reported in the United States. In one day, there were 10,054 new confirmed cases and 163 new deaths compared with 7 am the previous day.
The world health organisation said on Tuesday that the us could become a new centre of the coronavirus pandemic because of a “dramatic and rapid increase” in the number of cases of coronavirus infection.
On March 23, Tom Bossert, a former assistant to the President of the United States for homeland security and counterterrorism, warned that the United States could soon become the country with the most confirmed COVID 19 cases in the world.
According to CCTV net, local time 24, confirmed by a reporter, known as the “virus hunter” American infectious disease expert professor lipkin, confirmed the infection of novel coronavirus. He has only mild symptoms of fever, cough and low fever. In January this year, professor lipkin paid a special visit to China on the new outbreak control.
“We don’t know how long it will take for the epidemic to peak,” says Nancy Perez, senior portfolio manager at Boston Private Wealth. We don’t know how to treat it. We don’t have a vaccine. So all this uncertainty is causing aftershocks.”
As for gold, B Riley FBR analyst Adam Graf wrote in a report that “unprecedented” fiscal and monetary stimulus measures will push prices to $2,500 in the third quarter of this year.
‘no matter how long the recession lasts and no matter how much further the overall stock market may fall, the extreme monetary and fiscal stimulus being implemented around the world will have an impact,’ he said. These effects could be comparable to the 2009-2011 period and push gold to new highs.
On the daily chart, the dollar index is now consolidating at a high and in a moderate decline, hitting a low of 101.04 the day before as the fed’s aggressive massive stimulus temporarily eased liquidity concerns. On the technical side, the MACD red kinetic energy column continued to weaken, the RSI index from the overbought level down, the KDJ random index is still in the overbought level area, suggesting a slight decline.
4 hours chart, the dollar index is in a volatile trend of decline, the current winding around the 20 moving average, but the overall still maintain a high consolidation momentum unchanged. In technical terms, MACD green kinetic energy column stable, RSI index fell below the 50 level, KDJ random index hovering below the 50 level, short term may still be lower.
On the daily chart, gold before three consecutive days of big outbreak, is currently trading around $1600, still above the main average, focus on the ability to stand 1600. In technical terms, MACD green kinetic energy column disappeared, RSI index trading above the 50 level, KDJ random index to rise above the 50 level, pay attention to the possibility of further higher.
On the 4-hour chart, gold has been on the offensive after testing its 1450 low and has now broken all averages, hitting as high as $1643, wary of a short-term correction. In technical terms, the MACD red kinetic energy column continues to weaken, KDJ random index trading in the overbought level area, focus on the possibility of a correction.
fundamentals Positive factors :
- According to real-time statistics released by Johns Hopkins University in the United States, as of around 7 am Beijing time on March 25, a total of 53,268 confirmed covid-19 cases and 696 deaths were reported in the United States. There were 10,054 new confirmed cases and 163 new deaths compared with 7 a.m. the previous day.
- Indian prime minister Narendra Modi has announced that India will initiate a blockade for 21 days. Analysts have warned that the global drug supply chain, which relies heavily on China and India, could be disrupted as India takes tough measures to contain the spread of the virus, worsening an already fragile supply situation.
- As of 6:16 p.m. Et on March 23, there had been at least 43,214 confirmed cases of COVID 19 in the United States, including 533 deaths, according to the Johns Hopkins real-time surveillance system. Us states reported more than 100 new deaths on March 23, the first time since the outbreak began that the number of deaths in the us has risen to triple digits in a single day.
- On Monday, the federal reserve said it would roll out a series of programs aimed at helping markets operate more efficiently in a novel coronavirus crisis. One was a pledge to continue its asset-purchase programme.
Fundamental negative factors:
- U.S. President Donald Trump and vice president mike pence held a conference call with Wall Street leaders to discuss the economic impact of COVID 19. Mr. Trump said he accepted he could not restart the economy immediately but did not want to shut it down for six months, prompting an outburst of risk sentiment.
- Wall Street rallied on signs that Congress is close to reaching an agreement on a $2 trillion economic rescue plan.
- Holdings of SPDR Gold, the world’s largest listed Gold exchange-traded fund, fell 1.5% to 908.19 tonnes on Friday.
- On March 23, U.S. Treasury Secretary Steven mnuchin recently said he was close to reaching an agreement on a stimulus bill.