SMM4: gold opened higher and lower on Thursday as the Federal Reserve decided to keep interest rates low for the foreseeable future. And the ECB president says the economy still needs monetary and fiscal stimulus. In addition, US President Joe Biden will announce an "American Family Plan" worth 1.8 trillion dollars. The price of gold rebounded briefly as the dollar continued to push down superimposed interest rates to keep them low.
India's gold consumption is expected to decline in the second quarter as several states impose blockades to curb the rise in novel coronavirus cases, affecting weddings and celebrations of important festivals, the daytime World Gold Council said. The escalating crisis in India has prompted most state governments to restrict the movement of people and require the closure of non-essential companies, dampening demand in the world's second-largest gold consumer.
"check out more metal futures.
According to the latest data released by the Ministry of Health of India on the 28th, the number of new cases of novel coronavirus infection in India reached a new high of 360960 in a single day, with a total of nearly 18 million. The death toll of novel coronavirus in a single day increased by 3293, reaching a new high, with the total death toll exceeding 200000.
The Indian government plans that from May 1, all people over the age of 18 in India will be eligible to be vaccinated against novel coronavirus. However, at present, the problem of serious shortage of vaccines has not been solved. Experts believe that only when India takes extremely stringent public health measures, the government takes a resolute and correct response, and the people have good cooperation, can India survive the current crisis.
Current diagnosis / cumulative diagnosis in India (source: Baidu big data)
New trend of diagnosis in India (source: Baidu big data)
Fundamentally, the Fed's interest rate resolution remained loose, while yields on the dollar and Treasuries fell, while the ECB president said it would continue to be loose, providing support for precious metals. However, the out of control of the novel coronavirus epidemic in India and the continued decline in ETF positions in precious metals are negative for precious metals.
Looking ahead, Goldman Sachs expects gold to be at $2000 an ounce in the next six months, and believes it is too early to say that digital currencies can compete with gold as a safe haven.
Carsten Fritsch, an analyst at Commerzbank, said the $1800 / oz mark has proved to be a difficult resistance level to break, but demand for gold ETF has improved from previous months and the massive sell-off in the first quarter has also improved.
Jeffrey Halley, a senior market analyst at OANDA, said the Fed almost maintained a dovish position at the (FOMC) meeting of the Federal Open Market Committee overnight. Investors returned to global recovery trading, pushing the dollar lower and Treasury yields flat. Investors bought gold bulls again after the Fed gave no hint of surprises or cutbacks in bond purchases.
