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Gold trading reminder: under the initial attack, Biden sent assists in time


In the Asian session on Friday (April 23), spot gold remained stable around 1784. On Thursday (April 22), the price of gold fell 0.55% from a two-month high, as strong initial application data boosted the strength of the US dollar and weakened the attractiveness of gold. The statement of the European Central Bank also put pressure on the euro and further supported the dollar. However, the news that Biden plans to introduce an ultra-high capital gains tax has hit the stock market, which limits the decline of gold price. The surge of the epidemic and the popularity of consumer demand are also expected to continue to support the rise of gold price.To get more news about fxbv, you can visit wikifx.com official website.

As the recovery of the job market accelerated, the number of first-time jobless claims in the United States unexpectedly fell to a new low during the pandemic last week.

According to data released by the U.S. Department of labor on Thursday, as of the week of April 17, the number of first-time jobless claims under the regular unemployment benefit plan in U.S. states decreased by 39000 to 547000. The previous survey economists forecast a figure of 610 thousand. The previous week's figure was revised upward to 586000.

With the mitigation of the epidemic prevention and control measures, the U.S. job market is strengthening, and employers are hoping to fill the vacancies caused by the epidemic restriction measures. With the goal of vaccinating an average of 3 million people in the United States every day, the growth of the job market should further accelerate. Manufacturing, retail sales and other indicators released by the United States have also performed strongly in recent weeks.

In the week ending April 10, the number of people who continued to apply for unemployment benefits decreased by 34000 to 3.67 million.

Texas and New York had the biggest declines in initial jobless claims, while Florida and Georgia also had larger declines.Naeem Aslam, chief market analyst at vatrade, said the unemployment benefit report was stronger than market expectations, thus preventing further increases in gold prices.

The US dollar rose 0.18% against major currencies on Thursday due to positive economic news, in contrast to the European Central Bank's statement that the eurozone is weak and still needs to maintain the current pace of bond purchase.

According to sources, US President Biden will propose to increase the marginal income tax rate of individuals with an income of more than $1 million from 37% to 39.6%, and nearly double the capital gains tax rate to 39.6%.

After the news, the market's safe haven buying of the US dollar further strengthened the rise of the US dollar.

ECB president Lagarde said policymakers had not discussed phasing out the bond purchase program "because the time is not ripe". She said that despite progress in vaccination. And the economy shows signs of improvement, but the economy is still "full of uncertainty".

After Lagarde's speech, eurozone bond yields fell and the euro gradually fell from its daily high, which further supported the US dollar index and hit the price of gold.
Ronald Simpson, managing director of Action Economics and global currency analyst, said: "the upward potential of the euro will be limited until there is better new coronavirus infection data in Europe."
Bullionvault's ash said that although the European Central Bank's failure to expand quantitative easing seemed to disappoint the bond market, its policy statement stressed how intense quantitative easing is now. The huge scale of the current stimulus measures also means that the long-term prospects for investing in gold are solid.