Weekly

Global new viruses continue to wreak havoc. In the past week, the cumulative number of infected people in novel coronavirus exceeded 16,600, and the number of confirmed deaths increased to over 655,000.

The United States continues to be the country with the largest number of infections in the world with 4.43 million cumulative infections. The epidemic could not be stopped, and the number of people gathered in Hong Kong was reduced to two, and all restaurants were prohibited from eating at the same time.

Since the requirements are so harsh, why didn't the Hong Kong Government directly declare the ban? Is lack of courage to bear? Or lack of vision? Or both? On the contrary, investors with long positions in gold will get generous returns with their eyes and guts!

They have insight into the weather, geography and people, and have a cup when gold breaks through the historical high.

(I) Timing: The outbreak of novel coronavirus has hit the world economy badly, and the performance of enterprises has been affected. When funds are reallocated, they flow into the gold market, which increases the demand.

(B) Geography: China and the United States have had bad relations. Since the start of the trade war, they have changed from mutual benefit to mutual competition, and the relationship between the two sides has gone further and further. Until the United States used the Hong Kong Autonomy Law to accuse Beijing of forcing the implementation of the "National Security Law of the Port Area" in Hong Kong as a catalyst,

China and the United States each asked each other to close their consulates in the two countries, and their relations fell to the freezing point since Nixon's visit to China in 1972. The political situation is unstable, and gold has once again become a safe-haven investment tool.

(3) People's harmony: long-term low interest rates, unlimited easing policies of central banks of various countries, and weakness of the US dollar against currencies of various countries. The cost of holding gold has dropped, which has covered some shortcomings of gold not paying dividends.

Due to the flood of funds in the market and the tense geographical situation, the US dollar index once fell to 93.5, and the gold price in the early Asian market hit a new high this year, breaking the record of US$ 1921.18 set in September 2011.

The highest price was $1945.6 per ounce, and it closed at $1,942 per ounce. It is expected to break the peak again today. However, breaking the top may trigger a large number of long-term investors to close their positions.

Profit taking will have the opportunity to push down the price of gold significantly. Moderna, an American pharmaceutical company, announced that the vaccine against novel coronavirus has entered the final trial stage, which is another unfavorable news for gold prices, and investors should pay attention to it.

For detailed analysis and operational suggestions, please CLICK the following link to join the group and check with the administrator
https://t.me/joinchat/OEEaFRx9QcbOZE-aQzNSgg