Happiness Investment Network News, March 29-On Monday (March 29) Asian markets, the U.S. dollar index was basically stable and is now at around 92.75; spot gold fell slightly, but still stayed above the 1,730 US dollar per ounce mark. This week investors will usher in heavyweight economic data including non-agricultural, which is expected to trigger market volatility. In addition, investors will also focus on the latest news in the US fiscal stimulus. According to media reports, US President Biden will issue a 3 trillion economic recovery plan bill. Analysts pointed out that more US fiscal stimulus measures are expected to increase investors’ interest in gold. Demand, thereby promoting the rebound of gold prices in the market outlook.
The well-known financial website Economies.com wrote an article that the price of gold continued to fluctuate in a sideways range, which was composed of US$1720.00 per ounce support and US$1740.00 per ounce resistance. Therefore, it is still predicted that the price of gold will show a sideways trend, and the price of gold needs to break the above-mentioned support or overcome the above-mentioned resistance in order to clarify the next trend goal.
According to Economies.com, if the price of gold exceeds US$1740.00 per ounce, this will push the price of gold to rise further, with the first target at US$1765.00 per ounce. On the other hand, if the price of gold falls below US$1720.00/ounce, this will cause the price of gold to continue to fall. The bearish targets are US$1700.00/ounce and US$1692.00/ounce.
Deutsche Commerzbank analyst Eugen Weinberg said that factors such as rising stock markets and a strong US dollar that usually depress gold prices do not seem to have put too much pressure on gold prices.
RJO Futures Senior Commodity Broker Daniel Pavilonis told Kitco News: "Compared with August, the market sentiment is lower. This is a good sign. Now may be the time to start buying gold. Pavilonis said that the price of gold may go further this week. Up.
The White House: Biden will publish a 3 trillion economic recovery plan bill
On Sunday (March 28) local time, the White House spokesperson Jen Psaki said that President Biden decided to divide the $3 trillion economic recovery plan into two bills, which will be released on Wednesday (local time). March 31) delivered a speech in Pittsburgh, Pennsylvania, detailing the first bill focusing on US infrastructure reform.
According to media reports, the first bill will focus on solving infrastructure reform issues such as the reconstruction of roads and bridges in the United States and the expansion of network broadband in rural areas. The second bill to be announced in April will involve issues such as child care measures and medical care subsidies.
According to a Fox News report on March 28, Psaki said on Sunday that President Biden will recover from the new crown virus in April after promoting a $1.9 trillion new crown virus rescue package earlier this month. The plan "has more to say," and the plan focuses on issues such as health care.
In an interview with Fox News Sunday, Psaki said: "When the President advocated the American rescue plan, he talked about two phases: rescue and recovery. What the American people will hear this week is part of his plan. This is the first step of his recovery plan, which includes investment in infrastructure.” Psaki said: “He will make more comments on the second part of his recovery plan later in April, including yours. Some of the things talked about-health care, child care, and solutions to these problems. Now that many women have left their jobs, this is a crisis. We are still considering the entire plan."
Psaki said that this plan and the Democratic Party’s expected infrastructure bill will be "two separate proposals." She said: "We will work with the Senate and the House of Representatives to see how we can proceed."
Fox News reported that Biden is expected to deliver a speech in Pittsburgh on Wednesday, detailing an infrastructure plan.
Senior U.S. Democratic officials proposed to increase as much as $3 trillion in new spending on an employment and infrastructure bill, which will form the basis of Biden's "Rebuilding a Better Future" plan. According to Politico, Democrats are eager to add what they can to the package, including new measures for drug pricing and climate policy.
On March 22, local time, the "New York Times" quoted a source in the US government as revealing that US President Biden was preparing to launch a $3 trillion spending plan. This new expenditure plan is expected to be divided into two parts, one part will focus on infrastructure construction, and the other part will focus on other key domestic projects.
An economist at ING said: "The ink on the US$1.9 trillion financial rescue plan has not yet dried. Next week, US President Biden will advance the US$3 trillion'Reconstruction of Better Green Energy and Infrastructure Plan'. The difficulty lies in getting Congress to pass the bill because it needs 60 senators to submit it to a vote... The bill may need to be split into smaller programs, and if Republicans firmly oppose it, it may also be diluted to a certain extent. Not an easy task."
U.S. Treasury Secretary Yellen told lawmakers last Wednesday that tax increases will be needed to pay for infrastructure projects and other public investments.
HSBC (HSBC) chief precious metals analyst James Steel wrote in a report: "Whether it is for companies or individuals, the possibility of raising taxes will often increase the demand for gold as a safe-haven asset."
Fiscal stimulus will further boost US inflation expectations. Gold is considered a traditional hedge against inflation and currency devaluation.
Bart Melek, head of global strategy at TD Securities, said that gold is expected to exceed $1,900 by the end of the year because we will see inflation and the Fed will not take action. In addition, we will have more debt and more infrastructure spending.
Daniel Pavilonis, Senior Commodity Broker at RJO Futures, said: "Perhaps we start to get rid of the correlation of rising interest rates and falling gold prices. If we can deviate from this by announcing Biden's new infrastructure package, it will be good for gold. . When we see inflation, it’s time to buy gold."
Pavilonis pointed out that with the introduction of more money printing and more loose policies, inflation will begin to show, and the February low may be the bottom of gold. He said: "The longer the gold price consolidates sideways, the easier it is for the path of least resistance to become an upward path."
This week, non-agricultural enterprises brought a lot of key data to attack
This week investors will usher in many key US data, the most critical of which is undoubtedly the US non-agricultural employment report.
The March non-agricultural report of the United States is scheduled to be released on Friday. Market expectations show that the US economy will add 655,000 jobs in March.
Analysts predict that the unemployment rate in the United States this year may drop to levels close to the level before the outbreak of the new crown epidemic, and the employment situation will pick up in the future.
Economists expect the U.S. unemployment rate to fall to 6.1% in March, but if the Fed ignores this figure, investors may follow—especially if the participation rate remains low. Approximately 61.4% of Americans took part in work, compared to 63% before the pandemic.
The United States is also scheduled to release the ISM manufacturing purchasing managers index and initial jobless claims on Thursday, and the ADP employment data will be released on Wednesday. The ISM Manufacturing Purchasing Managers Index will also be used as a hint in the employment report and may show an increase in the activity of the US industrial sector.
The market will also pay attention to the US house price index on Tuesday and the pending home sales index on Wednesday.
According to the latest Kitco Golden Week Survey released last Friday, the bullish and bearish sentiments in the gold market are relatively balanced because the price of gold has been unable to break through the key resistance level of $1,750.
Sixteen Wall Street analysts participated in Kitco's gold survey. Among these participants, 7 analysts (44%) believe that the price of gold should rise; 8 analysts (50%) said that they expect the price of gold to fall, and 1 analyst (6%) is concerned about the price of gold. Hold a neutral view.
Lukman Otunuga, senior research analyst at FXTM, said: "The encouraging developments in vaccines in the U.S. have ignited hopes for a faster recovery in the U.S. economy, thereby boosting appetite for the U.S. dollar. If the U.S. dollar continues its rally in the coming week, this may be possible. Will drag down the price of gold.
However, not everyone has a negative view of the gold market. Many people continue to believe that the price of gold will receive long-term support, and the current level may be an attractive entry point.
Charlie Nedoss, senior market strategist at LaSalle Futures Group, said that as long as the price of gold stays above the 20-day moving average, he is still bullish. The 20-day moving average cut-in position is located at approximately $1725. Nedoss said there are signs that the dollar and bond yields may have peaked recently.
