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The first trading week after the Spring Festival, the US dollar is crowned with the whole army.
FX168 Financial News Agency
On Monday in the Asian market, spot gold volatility was trading near the level of $1313. Last week, gold fell moderately, and the price of gold almost fell below the thousand-third mark, as the US dollar index was supported by relatively high economic data. However, as a whole, gold is still tending to rise, and market safe-haven buying will continue to provide support for gold prices. This week, Sino-US trade negotiations are about to restart, which will become one of the main factors affecting the price of gold.
Strong dollar VS institutions increase holdings, gold keeps stable
Last week, although the Fed continued to maintain the dovish view, this did not hinder the continued rebound of the US dollar. The US dollar index continued to rise after recovering the 96-integer mark, and is now trading near the 96.65 level.
San Francisco Fed President Daley stressed on Friday that the Fed needs to maintain patience in raising interest rates, but the tight financial situation is making the economy more sustainable, and the Fed is more cautious about raising interest rates.
The dovish speech of the Fed officials failed to stop the dollar's long-term footsteps. On the one hand, the US ADP employment data was better. In addition, the US trade narrowed its trade deficit in November, and economic data provided support for the US dollar index.
On the other hand, the European Central Bank turned into a dovish position, and the poor economic data in the euro zone also provided a momentum for the US dollar index to rebound.
Spot gold was approaching the $1,300 mark on Monday, with a minimum of $1302.63. Subsequently, the price of gold once again oscillated upwards, and has now recovered the 1310 mark, which is now reported at $1313.60 per ounce.
The price of gold fell moderately last week, and the overall upward trend has not been undermined. The price of gold continued to be supported by selling.
The World Gold Council reported on Wednesday that as of the end of January, global gold ETFs and similar products held the highest level since 2013.
Global gold ETF holdings have increased for the fourth consecutive month, with an increase of 72 tons in January, bringing its total holdings to 2513 tons. In the past four months, the global ETF holdings increased by about 185 tons, reversing the downward trend in the third quarter of 2018.
In addition, according to data, the central bank purchased 651 tons of gold in 2018, an increase of 74% over the previous year. Officials are buying gold at the fastest rate since the United States announced its departure from the gold standard in 1971.
Sino-US trade negotiations started again, and the market fog has not yet dissipated
According to the announcement of the Ministry of Commerce of China, the China-US high-level economic and trade consultation will be held in Beijing from February 14th to 15th. Liu He, member of the Political Bureau of the CPC Central Committee, vice premier of the State Council, and Chinese leader of the China-US Comprehensive Economic Dialogue, will hold a new round of Sino-US cooperation with US Trade Representative Wright Heze and Finance Minister Mnuchin in Beijing from February 14th to 15th. High-level economic and trade consultations. The two sides will further discuss the issue of common concern on the basis of the recent Washington consultations.
U.S. Treasury Secretary Nuchin and trade representative Wright Heze led a large team on Monday (February 11) to travel to Beijing to continue consultations on trade issues. Earlier, US President Trump confirmed that he would not meet with Chinese President Xi Jinping before the deadline for a trade agreement between China and the United States on March 1. This has exacerbated concerns that trade tensions have dragged down global economic growth. If the two sides cannot reach an agreement before the deadline, the United States will increase the tariff of 200 billion US dollars worth of Chinese exports to the United States from the current 10% to 25%.
When asked if he would meet in the next month or so, Trump said, "It has not been decided yet."
White House economic adviser Kudlow said earlier that Trump and Xi Jinping’s meeting was “still far away”, but he still believed that the two leaders would meet at some point.
Circle Squared Alternative Investments founder Jeffrey Sica said there were reports that the United States and China did not make any progress in reaching a trade agreement, which pushed the price of gold up. People finally realized the fact that this problem could not be solved before March.
Shusuke Yamada, chief analyst of Bank of America Merrill Lynch Japan's foreign exchange and stock market, said investors became worried. The market has been optimistic since the beginning of this year that trade disputes will find a solution.
Editor in charge: Dou Xiaowei
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