Metals News
Spot gold fell more than $10 of the "culprit" found! Investors cool down US stocks issue warning
May 9,2019
The content below was translated by Tencent automatically for reference.

SMM News: after gold broke through the $1290 mark, the trend reversed and fell $10 from the intraday high, behind which it turned out to be them; the two positive news came that the oil price "rose first to respect", but Saudi production is suspect, and production will be reduced in June.? Investors remained cautious, with the top three indexes opening lower, with only the Dow closing slightly higher. The sell-off in US stocks intensified and the S & P 500 was close to key technical indicators. The analysis points out that investors are crazy about short-term protection.

Gold reversed after breaking through the $1290 mark on Wednesday, falling $10 from its intraday high in late trading. Oil prices fell and then rose, EIA stocks unexpectedly fell by 3.963 million barrels and the Iranian Foreign Ministry's announcement that it would phase out the Iran nuclear deal supported the price of oil, which rebounded by more than $1 from its lows. On the currency side, the pound broke through the 1.30 mark at one point because of a lack of investor confidence in the UK's cross-party negotiations, while the New Zealand Federal Reserve's three-year interest rate cut sent the New Zealand dollar down 70 points.

Buoyed by risk aversion, gold continued to rise above the $1290 mark on Wednesday, but reversed sharply in late trading, falling as much as $10 from its intraday high. The analysis points out that this is mainly because the yield on the evening 10-year Treasury note rebounded from a five-week low earlier in the day, rising nearly 0.5%. In addition, the three major indexes of US stocks rose briefly in intraday trading, and the dollar index, which has been in horizontal trading around 97.50, also suddenly rose above 97.60 in the evening, dealing a further blow to gold prices.

2ETF investors continue to sell gold. Gold holdings at (ETF), a global exchange-traded fund, fell 57 tons to 2424 tons in April, equivalent to an outflow of $2.2 billion, according to data released by the World Gold Council on Tuesday. At the end of April, global gold ETF outflows totaled $377 million, or 0.4 per cent of assets under management, reversing the strong start to January.

It is reported that US President Donald Trump will announce an executive order on Thursday to impose new sanctions on Iran's steel, aluminum and copper industries. Within days, the US energy intelligence group Energy Intelligence pointed out that there are signs that traditional buyers of Iranian crude oil did not place orders in May, so Iran's crude oil exports in May could fall below 500000 barrels per day. The increase in US sanctions comes as Iran's foreign ministry said on Wednesday that Tehran would gradually withdraw from the Iranian nuclear deal.

Saudi crude oil production in June is expected to remain below OPEC + 's production reduction target, with crude oil exports expected to fall below 7 million barrels a day in June, according to sources familiar with the Saudi plan on Wednesday. But it is worth noting that the news does not allay fears that Saudi Arabia may increase production. Earlier, it was reported that Saudi Aramco would provide additional crude oil to Asian refineries in June, and within days the source confirmed that Saudi Arabia had received requests from oil consumers to expand exports in June.

The five pounds continued to fall on Wednesday, falling below the 1.30 mark at one point, with investors seeing a bipartisan deal on Brexit as less likely. British Prime Minister Theresa May will remain in office until Brexit, a spokesman for British Prime Minister Theresa May said on Wednesday. British Labour MPs said that Theresa May will meet with the 1922 Committee next week, when she will mention her resignation.

The New Zealand dollar fell more than 70 points against the dollar after the Federal Reserve of New Zealand cut its official discount rate (OCR) by 25 basis points to 1.5 per cent for the first time since November 2016 and its lowest benchmark rate ever. New Zealand Federal Reserve Chairman Orr said the reason for the reduction in OCR is that global economic growth has slowed. While the central bank cut its forecast for interest rates by 2020 to below 1.4 per cent, Mr Orr said it was too early to judge whether there was a need to cut rates again.

Currency an, one of the world's largest cryptocurrency exchanges, said in a statement on Wednesday that hackers had stolen $41 million worth of bitcoin from the exchange. The hacker used "including phishing, viruses and other attacks" to remove 7000 bitcoins, the statement said. The news sent the price of bitcoin down as much as 3 per cent, losing $2.7 billion in market value. Within days, European Central Bank President Draghi said crypto currency is a very dangerous asset.

[risk early warning]

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