The price of gold failed to regain the key 1900! Pfizer supports new crown recovery, Fed's future outlook helps setbacks
2020-11-18


FX168 Financial News (Hong Kong) News As the shorts rose, gold prices fell from their intraday highs. The price of gold is pushed down, and the new crown vaccine and the Fed's future outlook are the most critical risk signals. The latest good news from the US pharmaceutical company Pfizer supports investors' hopes for the new crown vaccine. The controversial Federal Reserve candidate Judy Shelton was vetoed in a key Senate procedural vote, which means that the nomination may eventually fail and help the gold price fall.
 
As of 10:01 before the deadline, the price of gold had fallen by 0.07% to US$1,878.70.
 
Fundamental analysis: Pfizer's vaccine trial is eye-catching again to block the third wave of the US epidemic
 
Following Pfizer’s announcement last week that the vaccine jointly developed with its German partner BioNTech has reached 90% effectiveness, the Moderna vaccine also reported good news this week, saying that its vaccine is more than 94% effective and can be stored in the refrigerator at cold storage temperature. Encouraging U.S. stocks to surge. Pfizer even stated today (November 18) that the new crown vaccine has reached a safety milestone. However, Zerohedge wrote in the latest article that the good news for vaccines is important because of the latest report from Bank of America that the number of new confirmed cases in the United States is increasing significantly. Bank of America’s Ethan Harris said that according to the Bank of America’s calculation of new cases, the United States will more than double the number of cases every two weeks. Even if the growth rate drops to 20%, it means that the number of cases will double every four weeks.
 
Bank of America also stated that the US government's solution to the increase in new cases is to a large extent only to increase the intensity of new crown testing, but cases in almost every state are increasing. Last week, there were 36 states. The number of cases reached a new high. Zerohedge commented: “Remember that I said before that the Fed needs a new crisis to double the size of QE? Now we have seen what a crisis is, especially Pfizer and Moderna vaccines will not be widely used until mid-2021. Used by American people."
 
Many Americans believe that the United States has now entered the third wave of the new crown epidemic. According to reports, the number of newly confirmed cases in the United States in a single day hit a record of 100,000. The latest report from the Centers for Disease Control and Prevention (CDC) also shows that the number of confirmed cases of the new crown in the United States yesterday (November 17) rose from 138,02 to 151,855, with 762 deaths. FX Street reported that Pfizer still has no intention of stopping. The CEO of Pfizer resurrected the hopes of investors in the latest statement. He said that Pfizer has been "very close" to submit an emergency use authorization application for the new crown vaccine to the United States.
 
Jeff Wright, deputy chief executive officer of Gold Mining, made a point. He believes that the gold market will continue to show weakness from this weekend to Thanksgiving next week. He said: "After Thanksgiving, the weak posture of gold will be eased. At that time, Washington must return to discussing stimulus measures in order to look forward to funding the government after December 11."
 
Fundamental analysis: the Fed’s nominations to reject the gold standard advocates become a gold risk signal again
 
The U.S. Senate restricted the nomination debate process to vote on Tuesday (November 17), and the final veto means that the opposition can continue to hinder the nomination process from entering the full voting confirmation stage. Since Judy Shelton's views on the independence of the Fed, the gold standard and bank deposit guarantees are contrary to those of many lawmakers, US President Trump's nomination of his former economic adviser has been controversial from the beginning. In addition to the opposition from Democrats, some Republican senators also expressed their opposition, and the final vote was rejected at 47-50, which means that this nomination is likely to fail in the end.
 
Standard Chartered Bank (Standard Chartered Bank) analysts believe that the Fed may see the need to relax interest rates in the coming weeks, even before the Federal Open Market Committee in December. According to the results of the two special elections in January, it will be decided who will win the majority of seats in the Senate. Therefore, if the Democratic presidential candidate Biden fails to get two seats at the same time, the Republicans will continue to have the majority. It is to implement a small part of the economic plan.
 
US data on Tuesday (November 17) showed that US retail sales in October grew by only 0.3% month-on-month. An ANZ Bank analyst explained: “The data was lower than expected and it was down from 1.6% in September. Sales of cars and gasoline were weak, and sales of furniture, food and beverages, and clothing declined. With the exception of automobiles, retail inventories increased by 1.1%. Overall, this clearly shows that consumers are tightening their seat belts and the US economy will benefit from fiscal stimulus."
 
Technical analysis:
 
The 50-day moving average is close to US$1898.50, which limits the short-term upside of gold, but unless the shorts clearly fall below the September low of US$1848.82, the shorts will remain cautious.