Spot gold continued to rebound in Asian trading on Thursday, now peaking at around $1,714, close to the $1,715 level, as tensions between China and the United States once again dominate the market.
It countered, on global relax restrictions helped new crown recovery optimistic expectations, the stock market continues to rebound, gold fell quickly lost 1700 mark, the lowest hit near $1693, then peng’s stoke tensions in China and the United States, the speech safe-haven demand continued to heat up, gold basic back earlier losses, eventually closed at around $1708.
Worldometers world real-time statistics show that as of 10:21 Beijing time on May 28, the global total number of confirmed covid-19 cases exceeded 5.78 million, reaching 5,789,560, and the total number of deaths exceeded 350,000, reaching 357,432.
Among them, the cumulative number of confirmed covid-19 cases in the United States exceeded 1.74 million, reaching 1,745,803, and the cumulative number of deaths exceeded 100,000, reaching 102,107. Both confirmed cases and deaths are the largest in the world.
The European commission on Wednesday unveiled a 750 billion euro plan to support economies hit hard by the covid-19 crisis, hoping to end months of wrangling over how to fund recovery.
That was bigger than the $500 billion recovery plan proposed by Germany and France, and risk sentiment quickly returned, while the easing of coronavirus restrictions around the world fueled optimism about a possible rebound in the global economy.
On Wednesday, Disney announced plans to reopen its Disney World resort in Florida, the world’s largest theme park, in phases starting July 11. MGM Resorts said it would reopen its four Las Vegas casinos on June 4.
U.S. stocks continued to rally Wednesday on further easing of the blockade, with the s&p 500 closing above 3,000 for the first time since March 5. All three indexes ended higher.
But the sino-us trade situation continues to cloud the market. In the latest flashpoint, U.S. secretary of state mike pompeo said he testified to congress on Wednesday that under U.S. law, Hong Kong no longer deserves the same special treatment that British law did before July 1997.
US President Donald trump said on Tuesday that the us was preparing a strong response to China’s Hong Kong version of national security legislation to be announced by the end of the week.
Despite some investors’ optimism about a broader economic rebound, problems in China and the United States appear to be growing and gold prices have received strong support, recovering strongly from their lows to close above 1700 on Wednesday.
Jeff Wright, executive vice President of GoldMining Inc., previously predicted that gold could ‘rebound’ quickly as tensions rise between the U.S. and China. He also told MarketWatch that he “expects more bad economic data in the coming days,” which would boost safe-haven demand for gold.
Edward Moya, senior market analyst at Oanda, said the eu’s new fiscal stimulus package “could be the beginning of a new stimulus package that will help support riskier assets.” However, he added, “a new ‘cold war’ between China and the us could also drive a lot of demand for gold, as tensions are likely to persist until the presidential election. The permanent economic damage from the outbreak is likely to become apparent in the coming months, with gold enjoying steady inflows as an unbalanced economic recovery takes shape.”
On the daily chart, the U.S. dollar index fell from its daily high near 99.35 and continued to decline, then gave up all its gains and turned down, and finally closed below the 99 mark, losing the key 100-day moving average level. On a technical level, the MACD green kinetic energy column expanded slightly and the KDJ random gauge hit oversold levels lower, suggesting dollar shorts have gained momentum but may have limited downside.
On the 4-hour chart, the dollar index appears to be forming declining highs and lows, focusing on whether near-term support can form around 99.71, currently trading below its main moving average. The MACD green column was steady, with the KDJ random hovering below the 50 level, indicating strong short dollar momentum or further declines.
On the daily chart, gold is still in a volatile downward trend starting at $1,765, after briefly falling below $1,700 the previous day, with the focus on staying above that level. The MACD green kinetic energy column expanded slightly, while the KDJ random fell below the 50 level, suggesting gold bears are gaining momentum and still have room to fall.
On the four-hour chart, gold appears to have a series of falling highs and lows, and could still fall if it struggles to recover above $1,730. The MACD green kinetic energy column is close to disappearing and the KDJ stochastic has rebounded from oversold levels, indicating that short positions in gold are waning and may then stabilize higher.
Fundamental positive factors:
- Worldometers world real-time statistics show that, as of 10:21 Beijing time on May 28, the global total number of confirmed covid-19 cases exceeded 5.78 million, reaching 5,789,560, and the total number of deaths exceeded 350,000, reaching 357,432.
- The high court of British Columbia in vancouver, Canada, issued its first verdict in meng’s extradition case, ruling that meng met the “double jeopardy” standard and that her extradition trial would therefore continue. Meng will remain in Canada to attend related hearings at a later stage and await the outcome of the new trial.
- Secretary of state mike pompeo said he testified to congress on Wednesday that under U.S. law, Hong Kong should no longer enjoy the same privileges as before British law applied in July 1997.
- The United States is preparing a strong response to China’s version of national security legislation in Hong Kong, which will be announced by the end of the week, trump said on Tuesday.
Fundamental negative factors:
- The Japanese government announced on Wednesday that it will pass a second supplementary budget for 2020, which will see the Abe administration spend more than 234 trillion yen on fighting the epidemic and promoting economic recovery.
- The European commission on Wednesday unveiled a 750 billion euro ($826.5 billion) recovery fund as the region faces its worst economic crisis since the 1930s.
- Novavax, the us biotechnology company, said on Monday that it had begun the first human study of its experimental coronavirus vaccine.
- Data released on Tuesday also boosted confidence that the U.S. economy has bottomed out as it reopened its markets. The consumer confidence index jumped to 86.6 from 85.7 in April, according to the conference board. Sales of new single-family homes in the us rose by 623,000 units last month, beating expectations of 490,000.