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.
The price of gold rose modestly in European trading on Tuesday, but it seems difficult to break $1600 level, a key resistance. Some of the investors believe that it may still be blocked.
The US dollar index, which measures the greenback against a basket of six other major currencies, was down 0.53% at 97.448. The intraday low was 97.176, the lowest since January 16.
Central banks everywhere have hinted that the economy will be supported by actions. Investors look forward to the coming of the “policy” market…..