Silver investment: the Shanghai stock exchange said some cross-market index abnormal! Positive investigation reason! Beware of sudden changes in market sentiment!

Spot silver was trading at $15.222 an ounce on Monday. Silver fell to a low of $15.032 an ounce before recovering slightly from that point.

The latest announcement of the Shanghai stock exchange pointed out that: on the morning of April 20, 2020, some cross-market indexes such as China securities 1000, Shanghai & shenzhen 300, and all-referring to medicine appeared abnormal. At present, the Shanghai stock exchange is working with the index compiler China securities index co., ltd. on the relevant reasons for the investigation.

Earlier, according to sina finance, the shanghai-shenzhen 300 trading system malfunctionally, the index fell 2 percent, while the ETF did not. The csi 300 index fell 2.6% in early trading on April 20. Related ETF, huataiberui 300ETF intraday maximum rise of less than 0.3%, the maximum decline of less than 0.3%. A number of fund industry people said, is in contact with the exchange, is expected to have an announcement.

Precious metals rose before falling in the past week, climbing strongly to a 7 1/2-year high near the $1,750 / oz mark mid-week on economic concerns over COVID 19. Gold was relatively quiet on Wednesday and Thursday. But the good times didn’t last long, with the precious metal pulling back sharply again after President Donald trump’s announcement of a three-stage economic plan to restart the economy and news of the efficacy of reidsivir prompted a rush by short-sellers.

Global stock markets rallied for a second week after President Donald trump announced plans to gradually restore the U.S. economy to health after being hit by a coronavirus. Gold has sometimes moved in tandem with equities this year, and the recent sharp fall has prompted investors to sell precious metals to make up for losses in other markets.

Next, we need to keep an eye on the global COVID-19 outbreak dynamics, and watch out for another sudden change in market sentiment that could lead to sharp fluctuations in precious metals.

Technical analysis:

The dollar

On the daily chart, the dollar index into a narrow consolidation pattern, MACD green momentum column slightly narrowed, KDJ random index turned higher, indicating that the dollar upward momentum is still alive, next expected to rebound again.

On the 4-hour chart, the dollar index at the low to maintain a fairly narrow range of consolidation trading, MACD green kinetic energy column unchanged, KDJ random index slightly upward, indicating that the dollar may continue to maintain a narrow range of consolidation trend.


On the daily chart, silver prices after high pressure fall, MACD red kinetic energy column slightly narrowed, KDJ random index further lower, indicating that silver retracement kinetic energy strengthened, silver prices to receive incoming materials to continue to withdraw soft.

On the 4-hour chart, silver price maintained a narrow range of pressure trading, MACD green kinetic energy column slightly narrowed, KDJ random index turned slightly higher, indicating that silver short – term falling kinetic energy is insufficient, then or continue to narrow finishing trading.

fundamentals Positive factors :

  1. Worldometers world real-time statistics show that as of 8:40 PM Beijing time on April 20, global COVID-19 cumulative confirmed cases of more than 2.4 million, reached 2407, 211 cases, cumulative deaths reached 165, 046 cases. The United States has the highest number of cumulative confirmed COVID 19 cases in the world, with more than 760,000 cases, reaching 764303, and a total of 40548 deaths.
  2. Protests against home segregation orders broke out across the country on April 18, in Michigan, Ohio, Kentucky, and Minnesota.
  3. The conference board’s leading index fell 6.7% in March, the biggest monthly decline since the series began in 1959. The 60-year old index fell sharply, breaking a record 3.4 percent drop set in October 2008, when financial panic plunged the us into its worst recession since the second world war. The fall in April will almost certainly be bigger — and probably much bigger. The economy didn’t stall until late march as state and federal efforts to slow the spread of the coronavirus intensified.
  4. The number of Americans filing for unemployment benefits hit 5.245 million on Thursday. Adding in the three initial claims reports from the labor department, U.S. jobless claims climbed to 2.02 million in the past four weeks. That is slightly lower than the 22.442 million nonfarm jobs added since November 2009. The U.S. economy began adding jobs again in November 2009 for the first time since the recession.

Fundamental negative factors:

  1. U.S. President Donald Trump says he is closing in on an agreement on additional stimulus, and that an answer may come Monday. He had just finished a phone call with U.S. Treasury Secretary Steven Munchin.
  2. US President Donald Trump on Thursday set out guidelines for a three-stage state-wide economic reboot, setting out testing standards states must meet and requiring the rapid provision of protective gear to reopen. The governors of each state can carry out the guidelines according to the conditions of their own state, rather than relying on the orders of the federal government. The guidelines, titled “open America again,” have not yet been officially released, and Mr. Trump has distributed documents to state governors.
  3. US President Donald Trump said on Wednesday that the us had passed the “peak” of the coronavirus outbreak. On Thursday he will discuss guidelines for reopening the United States. Now Trump has canceled plans to set up a new task force to revive the economy and instead has held a series of phone calls with business leaders, according to two sources.
  4. German chancellor Angela Merkel said on Wednesday that her country would begin easing restrictions on its economy from April 20. Shops under 800 square meters can be reopened if measures are taken to “keep them clean”.

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