Weekly

January 25 th

Today's volatility range:

The US dollar reappears in weakness, and the market expects the Biden administration of the United States to increase financial assistance measures to boost the economy, so the gold price will be supported in the depreciation of cash. But the cash price is still subject to the resistance level of $1,864 per ounce.

It is expected that this week will still be held in 1838-1883. It will still fluctuate today, and the suggested volatility is between $1848 and $1868.

The new crown virus is still raging all over the world. Last week, Germany announced that it had found a new variant different from Britain and South Africa. For the time being, it was unable to report the lethality and infectivity of this variant virus.

However, experts predict that the developed vaccine will still be effective against the new variant virus. Due to the stronger spread of the British variant virus, the British government raised the epidemic prevention measures in England to the fourth level, and Germany extended part of the closure period.

The French government announced a curfew in the whole country, and moved the curfew forward. Portugal began to close its schools on Friday. The European Central Bank announced last week that it would keep interest rates unchanged, and the central bank announced that it would keep its main refinancing rate at zero.

The overnight deposit rate was minus 0.5%, which was in line with market expectations. European Central Bank President Lagarde made a speech after the interest rate was announced, warning that the number of new pneumonia infections is soaring, and there are still uncertainties in the entire European economy.

European governments need to speed up the deployment of the new pneumonia recovery fund, and urge the rescue plan with a scale of 750 billion euros to be put into operation immediately to help the regional economy recover more quickly and comprehensively.

Last Thursday, Biden was sworn in as the 46th President of the United States, and the process went smoothly. When he spoke as president for the first time, he called on American citizens to unite to meet the challenges, and stressed that he would become the president of all people.

Biden later posted a post on social media, saying that seeing the economic blow brought by the epidemic made the general public in trouble and promised to increase financial assistance measures. Yellen, the nominee for US Treasury Secretary, testified before the Senate Finance Committee.

She supported the large-scale rescue operation, saying that although it would lead to a higher debt burden, she pointed out that due to the current global low interest rate environment, the actual interest expenses did not rise significantly.

Emphasize that the benefits of measures outweigh the costs. On the issue of the US dollar exchange rate, Yellen reiterated that the US dollar exchange rate should be determined by the market. She pointed out that the United States would not seek the depreciation of the US dollar to gain a competitive advantage, and said that it opposed the manipulation of foreign exchange markets by other countries.

In order to gain advantages in trade, it is unacceptable to deliberately set exchange rate targets for this purpose. The US dollar continued to weaken last week, and the US dollar index was close to 90 points.

At the beginning of last week, the ten-year bond yield of the U.S. Treasury rose and hit the gold price, which fell to $1,808 per ounce at worst. On Thursday, Biden was formally sworn in as the 46th President of the United States, promising to increase financial assistance measures, and the dollar reappeared in weakness.

The gold price once rose to 1875 US dollars per ounce, but the US employment data was better than the market expectation, which limited the increase of gold price, and fell back to 1856 US dollars per ounce, up 29 US dollars per week. Tips: The five-day World Economic Forum was unveiled today.

On Wednesday, the theme is "Reset digital cash", which may cause fluctuations in cryptocurrency market. On Thursday morning, the Federal Reserve decided on interest rate, which is expected to keep the current interest rate unchanged. However, the speech of Fed officials after the meeting may affect market sentiment.

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