In addition, under the deadlock of the stimulus plan, the three major U.S. stock indexes also fell. The S & P 500 ended eight consecutive gains, and the NASDAQ index fell 1.69%.
Gold fell the biggest in seven years, while silver spot fell 15%
Why did precious metals suddenly plummet? According to the Shanghai Securities News, on the afternoon of August 11, the news that Russias first new crown vaccine has been registered by the state spread rapidly, which raised the markets optimistic expectation of overseas epidemic prevention and control, and suppressed the risk aversion sentiment. In addition, the improvement of economic data in various countries, the overheating of precious metal market in the short term and other factors are also restricting the further rise of gold.
COMEX gold futures fell 5.78% to $1921.8 an ounce on Tuesday, the biggest drop since June 2013, according to the China fund daily. CME also urgently adjusted margin, raising the initial margin of Comex 100 gold futures (GC) from $9570 to $10230, or 6.9%. Spot gold closed down about $115, or 5.7%, the biggest one-day decline in more than seven years. Affected by the sharp fall in gold prices, US listed company Barrick gold fell nearly 9%. Spot silver fell 14.7%, the biggest drop since the Lehman crisis.
COMEX silver futures for September fell $3.212, or 10.98%, to $26.049/oz, the largest decline in the US dollar since September 23, 2011, and the largest percentage decline since March 16 this year. Bitcoin, a safe haven asset, was also hit hard. Bitcoin once hit $11120 against the dollar, down more than 6% in the day.
As of 9:00, August 12, Beijing time, Comex futures fell below $1910 / oz, down 5.66% in the day, and spot silver in London was at $25.7320/oz.
Bitcoin cash (BCH) fell by nearly 6.4% in the past 24 hours to the close of US stocks on Tuesday, according to coinmarketcap data, with LTC down nearly 5%, ETF and BTC both down more than 3.8%, and XRP down more than 2.5%.
Gold price is suppressed by multiple factors
Since July, there has been a near crazy bull market for precious metals. Wind data shows that in July, London spot gold rose by more than 10%, London spot silver rose by more than 33%, and domestic Shanghai gold and Shanghai Bank futures rose by more than 8% and 31% respectively.
This week, however, golds crazy rally seems to have come to an abrupt end. As of 7:07 on July 12, Beijing time, London spot gold week fell more than 5%, with a minimum of $1900.97/oz, according to wind data.
Russian President Vladimir Putin said on August 11 that Russias Ministry of health has for the first time granted state registration for a new crown vaccine developed in his country. His daughter has been vaccinated and feels good and hopes to start mass production in the near future, Xinhua reported. Russian President Putin said on the same day that the vaccine was developed by the gamaliya National Research Center for epidemiology and Microbiology (hereinafter referred to as gamaliya center) with adenovirus as the carrier. The vaccine has passed the necessary tests, and it can give full play to its function and stably generate antibodies..
According to Russian media reports, up to now, 17 scientific research institutions in Russia are developing at least 26 new coronal vaccines, among which the gamaliya center has the fastest development progress. The phase 1 and phase 2 clinical trials of the vaccine in gamaliya center ended on July 15 and August 3, respectively, meeting the safety and efficacy standards of the Russian vaccine.
As a non-ferrous metal with the strongest currency attribute, gold has a unique hedging function. Previously, one of the main reasons for the gold boom was that the economic stagnation of overseas countries caused by the epidemic situation and the sharp increase of risk aversion sentiment in the market. With the rapid development of new crown vaccine, the markets optimistic expectation of overseas epidemic prevention and control is heating up, and the risk aversion sentiment is suppressed, and the gold price is diving.
Some of the recent economic data released by the euro zone are eye-catching and also a major factor in suppressing gold prices. The economic situation forecast report released by the European Economic Research Center in Mannheim, Germany on August 11 showed that the economic confidence index of Germany and the euro zone in August was better than market expectations. The report showed that the index reflecting investors confidence in Germanys economy in the next six months rose again in August, significantly higher than economists had expected. In the same month, the economic confidence index of the euro area rose significantly more than expected.
Ashim wanbach, head of the center for European economic research, said hopes for a rapid economic recovery continue to grow, and experts expect to see an overall recovery, especially in Germanys domestic economy. On the US side, the US July non farm employment data released on Friday was better than market expectations, and the US fiscal stimulus package failed to be implemented as scheduled, which also weakened the sentiment of the market to speculate on gold prices.
Trump is in a hurry: hold a briefing on the new crown vaccine and announce a large order for vaccine procurement
After the good news came out of both China and Russia vaccines, trump was in a hurry. Yesterday, Russia announced the registration of the first new crown vaccine, and two Chinese laboratories signed an agreement with the Mexican government, according to the China foundation. On the same day, Karen Conway, a senior adviser to us president trump, said that trump would listen to a briefing on the work of the new crown vaccine in the United States later on the 11th local time, and may inform the outside world of the latest progress.
This morning in Beijing time, trump told the outside world that he met with the head of the vaccine research and development group and reached an agreement with Moderna to purchase 100 million doses of vaccine. And its hard to match the good news from Russia. U.S. President trump announced on Tuesday an agreement with Moderna to purchase 100 million doses of vaccine. The U.S. government will purchase 100 million doses of Moderna experimental new coronavirus vaccine, which is currently in late human trials.
Moderna said the deal for its vaccine mrna-1273 was worth $1.525 billion, and the agreement would give the federal government the option to buy up to 400 million additional doses. In a news release on Tuesday, the company said the U.S. government has invested $955 million to develop a Moderna vaccine, bringing the total investment to $2.48 billion.
The U.S. governments deal with Moderna follows similar agreements with pharmaceutical giants Pfizer and Johnson & Johnson for a potential new coronavirus vaccine.
Shares of Moderna rose nearly 12% after the announcement, and the company fell 4.22% to $68.97 on Tuesday.
Yesterday, U.S. Secretary of health and human services, aza, said of Russias new crown vaccine that the key is not to be the first to develop a vaccine, but to ensure that the vaccine is safe and effective. Dr. Pitt Holtz, a medical scientist, said before the election that there is no way to do the vaccine
U.S. stocks weakened across the board, with the NASDAQ index down 1.69%
The new stimulus package, which has attracted much attention from the market, is seriously divided.
Last night, Mitch McConnell, the leader of the Senate majority Republican Party, said White House negotiators did not discuss a new round of anti epidemic relief plans with Democratic leaders in Congress on Tuesday. Stimulated by the news that trump proposed to cut capital gains tax and middle-income salary tax again, the opening trend of US stocks was good. However, as soon as McConnell said, US stocks opened high and went low, accelerating the plunge in the end. The three major stock indexes all closed down. The S & P 500 ended eight consecutive gains, while the NASDAQ index fell 1.69%. The daily economic news is integrated from China Fund News, Shanghai Securities News and Xinhua news agency. The above contents are published by app for the purpose of information transmission, and do not constitute any investment suggestions. Investors operate accordingly and bear their own risks. Source of this article: Yang Bin, editor in charge of daily economic news_ NF4368
On Tuesday, most Republican Party leaders did not hold talks with Democratic Party leaders on a new anti epidemic plan. Stimulated by the news that trump proposed to cut capital gains tax and middle-income salary tax again, the opening trend of US stocks was good. However, as soon as McConnell said, US stocks opened high and went low, accelerating the plunge in the end. The three major stock indexes all closed down. The S & P 500 ended eight consecutive gains, while the NASDAQ index fell 1.69%.
The daily economic news is integrated from China Fund News, Shanghai Securities News and Xinhua news agency
The above contents are published by app for the purpose of transmitting information, and do not constitute any investment suggestions. Investors operate accordingly and bear their own risks.