SMM News:-Precious Metals pressure callback on Tuesday. International gold prices fell nearly $30, falling below the $1900 / oz mark. COMEX gold futures closed down 1.78% at $1894.5 / oz, while silver fell even more. COMEX silver futures closed down 4.14% at $24.225 / oz. Due to the double whammy of vaccine and stimulus stalemate, European and American stock markets retreated from their recent highs, the dollar index rebounded and gold and silver fell sharply.
COMEX also sees huge volume trading. Data show that 5626 lots of COMEX's most active gold futures contracts were traded in Beijing within three minutes from 21:00 to 21:02, with a total value of more than US $1 billion.
The recent second outbreak of overseas outbreaks has highlighted the fact that there have been more than 10,000 new cases of novel coronavirus in several countries. However, the research and development of the vaccine has not been smooth. Eli Lilly Pharmaceuticals of the United States has suspended its antibody test against novel coronavirus because of potential safety risks. Previously, the Johnson vaccine trial was suspended due to the illness of the participants. The US fiscal stimulus package is also full of twists and turns, with Democrats demanding changes to the proposal and deepening differences between Republicans and the White House. Not optimistic.
Separately, IMF raised its forecast for global economic growth this year, forecasting a 4.4 per cent contraction in global GDP in 2020 and a 5.2 per cent contraction in June. China's economy is expected to grow by 1.9% in 2020, making it the only major economy in the world to achieve positive growth. In addition, US GDP growth is expected to be 3.1 per cent in 2021, compared with 4.5 per cent previously expected. Eurozone GDP growth is expected to be 5.2 per cent in 2021, compared with a previous forecast of 6 per cent. And warned that financial markets are out of touch with the economic situation and that a sharp correction could be made.
Us CPI rose 0.2 per cent in September from a month earlier, the lowest increase in four months. The weakening of US inflation expectations and the continued rise in real US bond yields also put pressure on precious metals prices.
Next, the price trend of precious metals mainly depends on the progress of the US election, the negotiation of the fiscal stimulus package and the change of the epidemic and other factors. The probability that the US stimulus package will be passed before the general election is extremely low, coupled with the impact of the epidemic, the current precious metal prices are still in the pattern of adjustment.
