SMM: today, Tuesday, non-agricultural rebound after the gold, in Monday's halberd, all the way down.
Gold, which rose and fell in early trading from around 1560, hit a low of 1546 in European trading yesterday. The U. S. market rebounded just 1555 to close at $1554.33 an ounce in the early hours of the morning.
Gold Asia fell sharply again today, followed by a weak shock, as of press release, quoted at $1538.1 / oz.
Sino-US relations have to ease the continuous sharp decline in bearish gold
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, left for the United States yesterday for the main purpose of signing the first phase of the economic and trade agreement with the United States.
At present, the two teams are in close communication on the specific arrangements for the signing of the agreement. Therefore, after more than a year of trade disputes, the economic and trade relations between China and the United States are gradually alleviating.
Against this background, gold has been weakening one after another and has been falling yesterday. And this morning, there was good news again between China and the United States.
On Tuesday morning, the US Treasury released its semi-annual report on exchange rate policy on Monday, eventually removing the identification of China as a "currency manipulator", Xinhua reported on Tuesday morning.
Stimulated by the continuous good news of the relaxation of relations between China and the United States, the RMB exchange rate rose sharply, and gold fell sharply in the Asian market, breaking the 1540 mark.
The US fiscal deficit is the first to break a trillion US dollars, and the hidden worries of the economic downturn have increased.
The US fiscal deficit exceeded $1, 000bn in 2019, the first time it has broken that level since fiscal year 2012, according to data released by the US Treasury on Monday.
The figures also show that the deficit has reached $356.6 billion so far in the new fiscal year that began in October, up 11.7% from a year earlier, and the deficit is expected to continue to exceed $1, 000bn in fiscal year 2020.
As the deficit increases, so does the debt of the federal government, which currently has about $23.2 trillion in national debt.
Under the pressure of huge deficit and national debt, the downward pressure on the US economy is increasing, and once the debt tumor breaks down, the pressure on the economy will be even more serious, which is a potential benefit for gold bulls.