On Tuesday (April 14) in the Asian session, the international spot gold at 1722.20 usd/oz, the recent bulls have been crazy to attack, gold has been two consecutive sessions with a long line of gains, the day further extended the rally, the highest hit 1725.30 usd/oz, since the day low has risen more than 14 usd/oz, is still holding a steady rise.
Gold surged more than 1.8 percent, its highest level in more than seven years, and as much as $48 since the session’s low, as panicked investors sought the safety of the precious metal amid fears that a new outbreak would hit the global economy and U.S. corporate profits.
Phil Streble, chief market strategist at Blue Line Futures in New York, said the U.S. stock market is on a choppy path and people who can’t digest it are continuing to pile into gold. I still think future inflation is the biggest reason for potential buying; Inflation is seen as good for gold, which is seen as a safe store of value when price pressures rise.
Major Wall Street indexes slipped as U.S. companies entered earnings season, with earnings expected to be hit by a new outbreak. Meanwhile, central Banks announced support measures to mitigate financial losses as the covid-19 outbreak continued to spread around the world, forcing countries to extend lockdowns.
Statistics from real-time data update site worldometers show that as of 09:58 Beijing time on April 14, the global total number of confirmed COVID 19 cases has exceeded 1.92 million, with 1,924,663 cases now confirmed and 119,691 deaths of more than 110,000.
Phil Flynn, the senior market analyst at Price Futures Group, expects Easter funds to start returning to the market as managers focus on all the fiscal and monetary stimulus that has boosted the economy and markets, which he said is supportive of gold. “We expect the money to come back as people return from vacation,” Flynn said. I think you’re going to see long positions start to pile up and a bigger explosion of gold brewing.”
On the daily chart, the dollar index maintained the recent pullback trend, the MACD green momentum column slightly expanded, the KDJ random index continued to decline, indicating the dollar to strengthen downward momentum, continue to extend the decline.
On the 4-hour chart, the dollar index showed a fairly narrow range of pressure trading, MACD green momentum column looming, the KDJ random index turned lower, indicating that the dollar short – term downward momentum is also slightly strengthened, continue to come under pressure.
On the daily chart, gold prices held steady upward momentum, the MACD red momentum column further amplified, KDJ random index moderately higher, indicating gold momentum to strengthen, the next expected to further expand the rally.
On the 4-hour chart, gold prices held steady, MACD red momentum column held steady, KDJ random indicators moderate flat, indicating that gold short term may continue to maintain a rising trend.
fundamentals Positive factors :
- According to statistics from real-time information and data update website world meters, as of 09:58 Beijing time on April 14, the global cumulative number of confirmed COVID-19 cases has exceeded 1.92 million, with 1,924,663 cases confirmed and 119,691 cases killed and more than 110,000 cases confirmed.
- According to the real-time statistics of Johns Hopkins University, as of 8:00 on April 14, Beijing time, there were 119,588 cases of COVID-19,918,855 confirmed cases and 119,588 deaths worldwide. More than 580,000 people have been diagnosed in the United States and more than 130,000 in Spain, Italy, France, and Germany.
- Us consumer prices fell 0.4 percent in March, the biggest monthly drop in five years, as Americans stopped traveling and the cost of petrol, airfares and hotel rooms fell sharply. The drop in March was the biggest since January 2015, according to the labor department. The core consumer price index, which excludes food and energy, fell 0.1% in March, the first monthly decline since January 2010.
- The federal reserve on Thursday announced a series of new measures aimed at providing an additional $2.3 trillion in financing to businesses and fiscally strapped governments. Under terms first outlined, the loans will be available to companies with no more than 10,000 employees and $2.5 billion in revenue in 2019. The payment of principal and interest will be delayed for one year. The fed said the programs, which would amount to $2.3 trillion, include wage protection programs and other measures aimed at providing funding to small businesses, as well as measures to shore up municipal finances through a $500 billion lending program.
Fundamental negative factors:
- At the White House press conference on July 13, local time, trump said that combining the data of newly confirmed cases and newly hospitalized cases, the expansion curve of the epidemic in the us began to show a flat trend. Mr Trump said it was possible to restart the economy sooner rather than later.
- New York governor Andrew Cuomo said he believed “the worst is over” as hospital admissions in the worst-hit state appeared to have stabilized near high levels.
- Parts of the U.S. could reopen next month, Dr. Anthony Fauci, director of the national institute of allergy and infectious diseases, said Sunday, expressing cautious optimism about a slowdown in the U.S. outbreak. He said there were “signs” that some of the indicators used to measure the crisis were “starting to stabilize” in some areas. Asked when parts of the United States could begin to loosen some of its strict social disconnection measures, Fauci said the process could begin “at least in some ways, probably next month.”
- OPEC and its allies agreed to cut their oil output by 9.7 million barrels per day (BPD) in the biggest ever cut, which was finalized Sunday local time. With less uncertainty in the oil market, risk aversion is likely to cool.