Market News

US President Trump said that "significant" measures will be taken to boost the economy, which is the main reason for the decline in gold price. In response to the impact of the new coronavirus pneumonia epidemic on the economy, it is basically expected that countries around the world will loosen their policies.

Generally, the market remains pessimistic in the coming weeks, as the epidemic continues and there are no signs of control, leading those risky assets being bearish. At present, investors are expecting that central banks and governments around the world will soon launch stimulus policies to calm the panic financial markets.

On Tuesday in the Asian session, the stock market generally rose slightly as the market expected policymakers to adopt a stimulus policy to assure some panic selling. The benchmark 10-year U.S. Treasury yield has doubled to 0.68%, and oil prices have risen more than 6%, making people hope that at least in the short term, the market has found a bottom.

Gold price has fallen since reaching the high of several years. In the earlier session, due to risk aversion sentiment this week, most likely caused by the news and decision from Saudi Arabia and Russia, gold price has been pushed up to above $1,700 level,  reaching a high of $1,703.40.

Over the weekend, a big new is that Saudi Arabia will plan to sharply cut the official oil prices. In the earlier session today, oil prices have plummeted by more than 20%.

Dealers now expect that, the Federal Reserve Board (FED) will have a further rate cut at least 25 basis points, after an emergency 50 basis points cut this week.

Oil prices fell on Thursday as there was no sign of a slowdown in the new crown virus epidemic, heightening concerns about the global economy, and prompting investors to sell more high-risk assets such as stocks and crude oil, and shift funds to safe-haven assets.

Yesterday, gold price continued to rise due to market concerns about the continuous spread of the new crown virus, causing funds to seek for safe-haven assets. On the other hand, the US dollar index fell sharply yesterday, reached a low level at 96.5, a new low this week, while US 10-year Treasury bonds and 30-year Treasury bonds both fell below 1% and below 1.5%, both hitting the historical low, which keep being a strong support to the gold price.

The US stock market rebounded strongly on Wednesday, with both the Dow and the S & P 500 rising more than 4%. The strong performance of former US Vice President Biden in the “Super Tuesday” Democratic primary election injected a boost in market confidence.

The US dollar index, which measures the strength of the US dollar against a basket of six other major currencies, declined by 0.41% to 97.13. The US dollar index slipped to a near eight-week low of 96.926 after the announcement of the interest rate decision.