The dollar index remained strong in Asian trading on Friday (February 19) and is now trading around 90.65. Spot gold continues to be under pressure, trading below $1770 an ounce after falling sharply and approaching the $1760 / ounce mark. Important news came from the situation in China, the United States and India. In China and the US, US Treasury Secretary Yellen said the US would conduct a comprehensive review of Trump-era tariffs on China and then assess how to move forward; on the Chinese and Indian sides, Chinese officials confirmed that four PLA soldiers were killed in the border conflict between China and India last year. U.S. president Joe Biden will attend the G7 summit on Friday and is expected to discuss topics such as the novel coronavirus epidemic and "dealing with China's challenges."
At one point, the price of gold was close to $1760.
Spot gold continued its recent decline in Asian trading on Friday, with gold hitting as low as $1760.52 an ounce. Analysts point out that investor optimism about the global economic recovery has pushed up US Treasury yields, making gold less attractive.
At one point on Friday, the yield on 10-year u.s. treasury bonds stood above 1.3% in Asia. The rise in US bond yields has recently undermined gold's attractiveness as a hedge against inflation as they increase the opportunity cost of holding unyielding gold.
On the other hand, global investors continue to be optimistic about the prospect of novel coronavirus vaccine promotion, which also continues to put pressure on the demand for safe-haven assets. At present, more than 186 million vaccinations have been conducted in 82 countries and regions, and more areas will be vaccinated in the coming weeks.
In addition, recent US economic data have improved, which has also reduced the safe-haven attractiveness of gold. Bob Haberkorn, senior market strategist at RJO Futures, said recent US data, including manufacturing data from the New York Fed and economic data from the Philadelphia Fed, showed that "the economy is beginning to recover from the downturn caused by the epidemic".
Economies.com wrote that gold prices resumed their downward trend after a previous test of $1785.00 an ounce, making the bearish trend scenario still valid for some time to come.
With gold falling below its first target of $1765.00 / oz set by the Economies.com, gold is likely to continue to be bearish, with the next target at $1740.00 / oz. Economies.com noted that keeping gold below $1785.00 an ounce was the first condition to hit the target.
James Hatzigiannis, chief market strategist at Ploutus Capital Advisors, said gold had been hit hard by rising US bond yields and the dollar in recent trading days, while the recent bitcoin boom could also shift investor interest from gold to cryptocurrencies.
Hatzigiannis pointed out that in order for gold prices to return above 1800 US dollars per ounce, we must first cool US bond yields and confirm that the novel coronavirus epidemic is coming to an end.
Han Tan, a market analyst at FXTM, said it was hard for gold to win over investors because other assets were more popular.
Long-time bullish on gold and known as the new creditor, DoubleLine chief executive Gunrak (Jeffrey Gundlach), wrote on Twitter earlier that the prospect of investing in bitcoin is better than gold. Bitcoin has soared about 79% this year as interest from institutional investors has increased.
Analysts said gold's 50-day moving average fell below its 200-day moving average, creating a technical "dead fork" that could lead to more selling. Craig Erlam, a senior market analyst at Oanda, pointed out that the "death crossover" is not an ideal development for gold, especially since it has not happened in more than 2 years. The rise in Treasury yields has made investors nervous, which is generally good for the dollar and relatively bad for gold.
China and the United States have big news: the United States will conduct a comprehensive review of Trump-era tariffs on China.
Us Treasury Secretary Yellen has confirmed that the US will temporarily maintain the tariffs imposed by the administration of former President Donald Trump on Chinese goods and will set the appropriate level after a comprehensive assessment. The White House also said it would review all national security measures taken by Trump, including an interim trade agreement with Beijing.
"at this stage, we have retained the tariffs previously imposed by the Trump administration, and we will continue to assess which measures are more appropriate," Yellen said in an interview with CNBC. Yellen said she would assess the effectiveness of tariffs.
Mr Trump's tariff policy on China has far-reaching implications after US experts estimated that a record 245000 US jobs were lost as a result of the destructive trade war between China and the US, and that most tariffs are still imposed between the two countries. In an interim agreement signed by Mr Trump in January 2020, China had promised to buy another $200 billion of US goods and services within two years, but Beijing was 42 per cent lower than the target set last year, according to a new study.
"We are evaluating the approach to China, but we will see unfair practices on many issues," Yellen said. I am worried about China's behavior in terms of trade, forced technology transfer and subsidies to Chinese companies. We need to ensure that the United States addresses and adheres to its international obligations in these areas. The two countries still need to cooperate in some areas, such as efforts to contain the novel coronavirus pandemic and deal with climate change. "
When it comes to the domestic economy of the United States, Yellen urged Biden to take greater stimulus measures, arguing that the risks of failure to do so would be more precipitous. "We think it is essential to have a massive stimulus package to deal with the damage," she explained. "the problem facing the United States is that 15 million Americans are behind in rent, 24 million adults and 12 million children do not have enough food to feed their stomachs, and small businesses are closing down. I think that if the Government has done too little, it will have to pay a higher price. In the long run, we think the benefits will far exceed the costs. "
"the current focus of the U.S. government is on providing relief and helping families get enough food, rather than raising taxes," Yellen said. I think we need to go through these dark times before the vaccination program can bring us back to life. "
Biden is in favor of raising taxes on companies and wealthy Americans to finance a $1.9 trillion fiscal stimulus package. But Ms Yellen said this should be done in a "fair manner", adding that the US needed to take into account the procedural problems it would face in carrying out these operations. "in the short term, I think we can bear the burden of economic recovery, get us through the pandemic and address the burden of families and small businesses," she said. "
Chinese Foreign Ministry spokesman Zhao Lijian said at a regular press conference on January 25 that the essence of Sino-US economic and trade relations is mutual benefit and win-win results, and that China and the United States share extensive common interests and huge room for cooperation. Cooperation was the main tone of Sino-US relations in the past and should continue to be the main tone of Sino-US relations in the future. Zhao Lijian said: China hopes that the new US administration will proceed from the fundamental interests of the two peoples and the common well-being of the international community, uphold the concept of openness, inclusiveness, mutual benefit and win-win results, focus on cooperation, manage differences, and work with China to put Sino-US relations back on track, create a favorable atmosphere for the healthy development of Sino-US economic and trade cooperation, and better enhance the common well-being of the two peoples.
Chinese officials confirm that four PLA officers and men died on the Sino-Indian border.
China and India have begun withdrawing troops from border friction points this month, as four PLA officers and men died in last year's border conflict, according to the latest announcement by Chinese state media on February 19.
China announced that five officers and soldiers were injured in the battle in the Caribbean Valley in June last year, including commander Qi Fabao seriously injured, battalion commander Chen Hongjun, soldier Chen Xiangrong, soldier Xiao Siyuan, and soldier Wang Chouran, four officers and men died bravely.
Central Radio and Television General Station CCTV military Wechat reported, "in the previous negotiations and fierce struggle, Commander Qi Fabao took the lead and was seriously injured; Battalion Commander Chen Hongjun and soldier Chen Xiangrong broke into the tight siege and rescue, fought hard, and sacrificed bravely; soldier Xiao Siyuan, after breaking through, was duty-bound to return to rescue his comrades-in-arms and fight to the last moment of his life. Warrior Wang Chou-ran, on his way out of support before crossing the river, tried his best to help his dispersed comrades out of danger, but he was submerged in the glacier. "
According to the report, "since April 2020, relevant foreign forces have violated the agreement between the two countries by crossing the border to build bridges and roads, frequently fighting for control at the border, trying to unilaterally change the status quo of border control, resulting in a sudden warming of the border situation." In June, foreign troops blatantly violated the consensus reached with our side and flagrantly crossed the line and provocation. In accordance with the practice of handling the border incident and the agreement previously reached between the two sides, Commander Qi Fabao, in good faith in resolving the issue through negotiations, took only a few officers and soldiers to negotiate, but was violently attacked by the other side. Qi Fabao organized officers and soldiers while shouting and negotiating, while occupying favorable terrain and waging a life-and-death struggle with foreign troops several times their own. The reinforcements arrived in time, and the officers and soldiers fought bravely and bravely, and the future criminals were defeated and driven away in one fell swoop. Foreign troops were routed and fled with their heads in their arms, leaving behind a large number of people crossing the line and casualties, and paid a heavy price. "
The Central military Commission awarded Qi Fabao the honorary title of "Hero Commander of defending the country and guarding the Border," posthumously awarded Chen Hongjun the honorary title of "Hero of defending the country and guarding the Border," and remembered first-class merit to Chen Xiangrong, Xiao Siyuan, and Wang Chouran.
Last week, India and China began withdrawing from the Bangong Lake region in the Ladakh region of the western Himalayas. Earlier, the two neighboring countries had experienced the worst conflict since 1962, and the two sides had been locked in a standoff for nearly nine months.
On June 15 last year, Chinese and Indian troops broke out in a serious physical clash in the Galavan Valley in the Ladakh region in the western part of the border between the two sides, killing 20 Indian troops and injuring hundreds more. China did not release its own casualty figures, but it was the biggest bloodshed between the two sides in more than 50 years.
After several rounds of negotiations, Wu Qian, spokesman of the Chinese Ministry of National Defense, released a message on the afternoon of February 10: according to the consensus reached in the ninth round of military talks between China and India, the front-line troops on the south and north banks of Bangong Lake began to organize disengagement with Synchronize on February 10.
Chinese Foreign Ministry spokesman Wang Wenbin also said on February 10 that according to the consensus reached at the meeting between the foreign ministers of China and India in Moscow and the ninth round of military talks between the two sides, the frontline units of the Chinese and Indian armed forces began to organize disengagement in the Synchronize in the Bangong Lake region on February 10. It is hoped that the Indian side and the Chinese side will face each other, strictly implement the consensus reached between the two sides, and ensure the smooth implementation of the disengagement process.
According to Indian media reports, China and India have begun to withdraw troops from border friction points this month. Scholars believe that the disengagement between China and India will remove obstacles to the resumption of bilateral relations between the two countries in the future.
India is preparing to approve some of China's new investment proposals in the coming weeks as tensions on the border between China and India ease and frosty relations between the two neighbors begin to thaw, according to three Indian government officials familiar with the matter.
At the height of tensions between China and India, India has various policies against China, including preventing China from participating in government tenders, forcing any Chinese company investing in India to seek approval and banning dozens of Chinese applications.
The Indian government's measures have changed foreign investment rules, which has significantly slowed investment flows from China. The rule change deadlocked more than $2 billion worth of proposals involving China, hurting Chinese companies' plans in India.
Biden will attend the G7 summit on Friday
U.S. President Joe Biden will meet with leaders of the Group of Seven leading nations on Friday to discuss the global response to the novel coronavirus epidemic and efforts to rebuild the global economy, White House spokesman Pusaki (Jen Psaki) said on Thursday.
Biden will also discuss the need to invest to improve collective competitiveness to meet the challenges posed by China and climate change, Psaki said at a news conference on Thursday.
Friday's virtual meeting was Biden's first meeting with other G7 leaders as president of the United States. G7 members also include the United Kingdom, Japan, France, Germany, Italy and Canada.
"Biden will focus on the global response to the epidemic, including vaccine production and supply distribution," as well as continuing efforts to combat emerging infections, she said.
Mr Psaki added that Biden "will also discuss the global economic recovery, including the importance of economic support from all industrial countries" and "the importance of updating the global role to meet economic challenges such as China".
At home, Biden is urging Congress to pass a $1.9 trillion stimulus package to boost the economy.
According to reports, the White House said on February 14 that US President Joe Biden will hold his first meeting with other G7 leaders on February 19 to discuss the novel coronavirus pandemic, the world economy and other issues. "dealing with China" will also be one of Biden's topics of discussion.
"online contacts with leaders of the world's major democratic market economies will provide President Biden with an opportunity to discuss plans to overcome the novel coronavirus pandemic and rebuild the global economy," the White House said in a statement on February 14. " "President Biden will also discuss the need to invest to strengthen our collective competitiveness and the importance of updating global rules to address economic challenges such as China," the White House said. "
Democrat Joe Biden took over from former Republican President Donald Trump on January 20. After his predecessor pursued the concept of "America first" for four years, Biden tried to convey a message of renewed engagement with the world and global institutions. Trump pulled the United States out of the World Health Organization's (WHO) and the Paris climate agreement. Biden brought the United States back to World Health Organization (WHO), rejoined the Paris Agreement, and expressed its willingness to confront China with its allies on a series of thorny issues.
On Feb. 16, local time, US President Joe Biden warned at a televised event that China would pay a price for its human rights violations in response to questions about China's handling of Muslim minorities in Xinjiang.
During his visit to Milwaukee, Wisconsin, Biden attended a town hall television program hosted by CNN (CNN) on February 16 to talk about how his new government responded to the novel coronavirus pandemic and how to revitalize the US economy. Biden said the United States will re-play its global role as a voice for human rights, adding that he will work with the international community to urge China to protect human rights.
On the night of Feb. 10, US Eastern time, US President Joe Biden spoke on the phone with Chinese President Xi Jinping. It was the first call between the two sides since Biden won the US presidential election in November. The White House said it was the first dialogue between Biden and Xi Jinping since he became president, and that China under Xi Jinping posed a huge challenge to the economy, climate and security of the United States.
