Silver Investment: Demonstrations spread around the world! Risk aversion is lingering! The silver explosion is brewing!

Silver was at $17.500 an ounce in Asian trading on Monday. Intraday silver staged a modest rally, extending its rally from the low of $17.214 / oz after a choppy session.

May non-farm payrolls report to be released on Friday, the United States unexpectedly positive, pose a decisive influence to the mood, because of this bridge before the poor U.S. economic data and stock market performance by leaps and bounds the fracture gap between the further affirmation of the positive outlook of the economy, which means that the stock is still far from the current point the middle at the top level, market outlook is still have considerable rise space.

Meanwhile, the domestic situation in the United States. A new round of street protests in New York and other major cities in the United States took place on Sunday. The protest came a day after the largest demonstration in Minneapolis since police brutality killed George Floyd, but there was no major violence.

The atmosphere of many street protests in the US over the weekend was like a holiday rally, in stark contrast to earlier scenes of clashes, looting and vandalism. Authorities and activists blamed the earlier scenes of chaos mainly on outside agitators and criminals.

Nearly two weeks of protests in the United States have inspired anti-racism demonstrations around the world, from Brisbane and Sydney in Australia to demonstrations in support of black Lives Matter in London, Paris and other European cities.

The Fed meeting is the highlight of the week as investors continue to focus on easing measures and improving economic data amid lingering international tensions and the risk of a second outbreak. Precious metals such as gold and silver could see bigger outbursts if risk aversion continues to mount.

Meanwhile, key U.S. data this week include consumer and producer prices for May, jobless claims for last week and the university of Michigan’s preliminary consumer sentiment index for June.

Technical analysis:

The dollar

On the daily chart, the DOLLAR index struggled to a low, the MACD green momentum column narrowed slightly, and the KDJ random index edged higher, indicating a respite in the downward momentum of the dollar, followed by a rebound from the low.

On the 4-hour chart, the DOLLAR index extended its decline to a low of 96.44 before recovering a bit, but continued to struggle in a tight range around the lows. The MACD red momentum column expanded slightly and the KDJ random index rose, indicating a slight strengthening of short-term rally momentum, followed by a small rally.


On the daily chart, silver maintained a volatile retreat, temporarily gaining support from the major moving averages, with the MACD green momentum column slightly enlarged and the KDJ random index falling further, indicating that silver’s downward momentum is still strengthening. Further declines are expected, but it may take some time to break below the average support.

On the 4-hour chart, silver is slightly higher from its lows, the MACD green momentum column is slightly narrowed, and the KDJ random indicator turns slightly higher, indicating that silver may continue to stage a small short-term rebound.

Fundamentals positive factors:

According to data from worldometers, as of June 8, Beijing time, more than 7.07 million cases and more than 400,000 deaths have been confirmed worldwide, including more than 2 million confirmed cases and 110,000 deaths in the United States.

Brazil’s President Bossonaro said On Saturday that the World Health Organization was “ideologically biased” and threatened to quit.

Former VICE President Joe Biden has clinched the Democratic nomination to face Donald Trump in the 2020 presidential election after securing 1,991 delegates, AP reported. Rising uncertainty over the U.S. election has fueled some risk aversion in the markets.

The DPRK will close its liaison office at the Kaesong Industrial Park because the ROK has allowed groups of north Korean defectors to send anti-DPRK leaflets to the DPRK, kCNA reported.

New claims for jobless benefits fell to 1.877 million on May 30, labor Department data showed On Thursday, while Economists polled by Dow Jones had expected 1.775 million. CNBC said it showed the worst of the coronavirus-related jobs crisis was over, but unemployment remained high. Since the coronavirus lockdown in mid-March, more than 42.6 million Americans have applied for unemployment benefits.

Fundamentals negative factors:

1.Friday’s (June 5) nonfarm payroll data from the LABOR Department surprised the market. U.S. nonfarm payrolls unexpectedly jumped 2.509 million in May, the biggest monthly gain in U.S. history since at least 1939, with markets expecting an 8 million drop. The unemployment rate fell to 13.3% from 14.7% in April.

  1. U.S. President Donald Trump said on Friday that 2 million doses of coronavirus vaccine have been produced in the United States and are “ready to go” once scientists determine whether they are safe and effective. The New York Times reported on Wednesday that the Trump administration has selected five companies most likely to produce the vaccine. The companies are Massachusett-based biotech company Moderna, Oxford University and AstraZeneca, and the big three drug companies Johnson & Johnson, Merck and Pfizer.
  2. The US government has cancelled a plan to ban Chinese passenger airlines from flying to the US after China said foreign carriers could fly there. But the new order limits Chinese airlines to no more than two flights a week to the U.S.
  1. U.S. soybean exporters struck a big export deal for the fourth straight day Friday, with the beans widely expected to go to China. China stepped up its purchases of US soybeans this week as prices rose for its main supplier, Brazil.

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