Weekly

After the Federal Reserve cut interest rates by half a percentage point in an emergency, the economic data released by the United States showed good performance yesterday, supporting the improvement of the atmosphere in the major markets and the sharp rebound of U.S. stocks.

The U.S. dollar also recovered slightly, while gold prices rallied at a high level, but the volatility narrowed.  The Bank of Canada also followed suit with a half percent cut. After a round of rescue, market tensions eased slightly.

However, the driving force for economic growth will inevitably remain difficult. In the future, corporate profits will definitely be affected, while the low-interest environment is expected to support the development of the precious metal market.

On the night of the Federal Reserve's emergency interest rate cut, the Dow Jones Industrial Average continued to drop sharply, but the mood in the Asia-Pacific region improved yesterday.  In the evening, the economic data released by the United States did well.

ADP announced 183,000 person-times in the United States, lower than the previous 291,000, but higher than the expected 170,000.  The ISM non-manufacturing PMI also reported a high of 57.3 in February.

It is higher than the expected 54.9 and the previous 55.5, above the 50-rise/fall dividing line, indicating that the non-manufacturing industry is in an expansion stage.  After the U.S. stock market opened, it went up again and again.

It has also given support to the US dollar. The European currency and other currencies have dropped slightly, and the rise in gold prices has also been limited.

Canada's central bank followed the U.S. interest rate cut by half a percentage point and once again supported the atmosphere of the big market. Gold prices benefited from the global low-interest environment and surged. Unfortunately, when it rose to around 1648, it began to be unable to do so again.

There is still a certain pressure above 1650, and it will take time for consolidation to take place again.  Technically, since the outbreak of the epidemic, the gold price has turned back due to the shortage of funds in the market and rebounded at a high speed at a low level.

A large triangle has been formed, i.e. the market will run in the big triangle, narrow down and tidy up, and the amplitude may drop first, which is more suitable for short-term speculation.

There are many economic data in the United States tonight, among which durable goods orders and the number of people applying for unemployment for the first time in a week will have an impact on the immediate market, but there will be little change in the future.

As the ADP number last night was better than expected, the market also expects that tomorrow night's non-farm will bring surprises to the market. With early digestion, U.S. stocks and U.S. dollars are still expected to perform well tonight.

However, if the gold price softens to around 1630, it can also buy at bargain prices, and the medium and long term is still expected to expand in a low-interest environment.