Gold prices are hovering around $1950 after hitting a two-month high. The continued low of the dollar reflects increased risk sentiment in global markets, pushing gold prices higher. However, gold investors are cautious, the Sino-US trade war is showing life, and the New York Stock Exchange no longer plans to delist the Chinese telecom giant. Coupled with the approach of the Georgia election, investors are closely watching the direction of risk indicators while transferring money to safe-haven assets. After the full blockade was announced in the UK, vaccine delivery and vaccination plans are still in full swing, and the update of the epidemic has become crucial.
Fundamental Analysis: the Dawn of Sino-US Trade War reappears the approaching results of US State elections
Sino-US trade heated up after US President Donald Trump signed an executive order to stop transactions applied by eight Chinese companies, but the New York Stock Exchange released a softening message that it no longer plans to delist the Chinese telecom giant. The New York Stock Exchange no longer plans to delist China Mobile, China Telecom and China Unicom Hong Kong Co., Ltd., the report said. China Telecom pointed out that the company will continue to trade on the New York Stock Exchange, and NYSE regulators will continue to assess the applicability of the executive order to China Telecom and its continued listing status. The NYSE said in a statement on its website that the decision was made "on the basis of further consultations with relevant regulators".
Chinese Foreign Ministry spokeswoman Hua Chunying pointed out that recently, some political forces in the United States have continued to crack down on foreign companies listed in the United States for no reason, reflecting the arbitrariness, arbitrariness and uncertainty of its rules and regulations. Hua Chunying said that the direct impact of the crackdown on Chinese companies on Chinese-related companies is quite limited, but it will damage the national interests and self-image of the United States, as well as the global position of the United States capital markets. "We hope that the US side will respect the rule of law, respect the market, and do more to maintain the order of the global financial market and protect the legitimate rights and interests of investors, which is conducive to the stable development of the global economy."
In the face of the gradual relaxation of SMIC's return to the US chip market and the sudden shift in its position by the New York Stock Exchange, the risk of a Sino-US trade war has gradually diminished, but there is still a need to pay attention to the actions taken by the Trump administration in the future. As the risk of the dispute between China and the United States diminishes, gold investors will also focus on the Georgia election in the United States. Although early polls in the United States put Republicans ahead of Democrats in early polls, global market participants are still willing to believe that Democratic presidential candidate Joe Biden is capable of providing a stronger solution to economic stimulus after the epidemic.
Outside the Georgia election in the United States, the changes of the new president before the inauguration ceremony on January 20 continue to hang over the market. Police in Washington quickly arrested Tario (Enrique Tarrio), the leader of the pro-Trump group Pride Boys (Proud Boys), ahead of a mass demonstration by supporters of US President Donald Trump on January 6. After being suspected of burning a flag supporting black equality and being found to be in possession of two dangerous guns at the time of arrest, a spokesman for the Washington Police Department said he would be charged with additional charges. Just before Tario's arrest, there were a number of expected pro-Trump protests in Washington. Major Muriel Boozer (Muriel Bowser) also urgently summoned the National Guard and declared Washington, D.C., officially on high alert.
Against this backdrop, despite optimism in the US stock market, the S & P 500 fell 0.16 per cent. Looking ahead, gold traders will keep a close eye on the election results in Georgia, while the latest news of the novel coronavirus epidemic and the dispute between China and the United States can provide additional instructions. Also need to pay attention to the ADP employment changes in the United States and the minutes of the FOMC meeting, and of course, don't forget the Chinese Caixin manufacturing PMI in the Asian market.
