Weekly

The COVID-19 epidemic broke out for the second time in many European countries, with France and Spain being the most serious. The number of patients in COVID-19 in France has reached 1.24 million, and that in Spain is close to 1.2 million.

More than 0.94 million people were infected in Britain, and more than 480,000 patients were recorded in Germany. Countries introduced more severe social isolation measures to prevent the epidemic from worsening. German Chancellor Merkel spoke in response to the epidemic.

Some entertainment venues will be closed, and all services except restaurants and bars will be closed. These measures will be implemented nationwide until December. French President Macron announced that the city was closed again.

More stringent than last time, restaurants and bars will be completely closed, and non-essential retail stores will also need to be closed. Universities only teach online and encourage working at home, and people other than those in the Root Convention countries are prohibited from entering the territory.

The market is worried that the epidemic situation and isolation measures will seriously hit the European economy. The major European stock markets have fallen across the board, and the German DAX index is the most hurt, falling 5%; The French CAC index fell close to 3.5%; Britain's FTSE 100 index fell about 2.6%.

The euro fell against the US dollar, and it is said that the Bank of England will decide to increase the asset purchase scale at the central bank meeting in early next year, and will implement the plan in mid-June next year. Earlier, the Monetary Policy Committee of the Bank of England also expressed that,

If prospects permit, the Bank of England will further relax monetary and fiscal policies, including negative interest rates to stimulate inflation, and the news will stimulate the pound to rise against the US.

The COVID-19 epidemic in the United States is also worsening. In the past five days, an average of 75,000 new infections have been recorded every day. Experts warned that the second wave of epidemic in the United States was caused by the slack of citizens during the Columbus Day holiday.

If the problem persists in the coming Halloween and Veterans' Day, the number of 100,000 cases per day will soon approach. The progress of a new epidemic mitigation plan in the United States is slow, although both sides in the negotiations have expressed their efforts to narrow their differences earlier.

However, it is hopeless to reach an agreement before the voting day of the presidential election on November 3, and the market has become pessimistic. In addition, the European stock market has plummeted, and the new york stock market has worsened, and the Dow Jones index has fallen by 3.4%; The Standard & Poor's 500 Index fell 3.5%;

The Nasdaq index still fell 3.7%. The deterioration of COVID-19 epidemic in Europe and America was beneficial to improve the safe-haven function of gold, but the stock markets in Europe and America fell sharply, and investors cautiously held US dollars to avoid risks. The highest index of US dollars approached the level of 93.5 points.

Gold was under pressure. Yesterday, the lowest price of gold was $1,869 per ounce, and it closed at $1,877 per ounce, a sharp drop of $30. In Monday's weekly review, it was unfortunate that gold prices tested the support of 1880 this week.

If the trend falls below 1876, it may depend on whether 1870/1862 can support it.

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