Overnight, spot gold extended its decline, hitting a high of $2,334.29 and a low of $2,291.19 during the day, and finally closed at $2,321.79. In today's Asian session, gold fell slightly and is currently hovering near $2,312.
Due to the decline in spot gold, the retail gold prices of many domestic jewelry brands have been lowered by about 14 yuan. For example, the price of pure gold jewelry in Chow Tai Fook on April 23 was 719 yuan/gram, compared with 733 yuan/gram the day before, down 14 yuan/gram overnight.
Big news in the stock market!
Overnight, the three major U.S. stock indexes closed up across the board, with the Nasdaq up nearly 1.6%. At the close, the Dow rose 263 points, or 0.69%, the Nasdaq rose 245 points, or 1.59%, and the S&P 500 rose 1.2%.
According to Hong Kong's Wind News Agency, the CME Group (Cboe) Volatility Index VIX has risen nearly 30% since April and is approaching the 20 mark. The last time this happened was in October last year, when the Fed's policy concerns and earnings season resonance triggered a correction in U.S. stocks, with the S&P 500 and Nasdaq plummeting nearly 7% in two weeks.
The trend of U.S. stocks is mainly affected by U.S. economic data.
According to the released news, the US PMI data for April unexpectedly cooled. The preliminary S&P Global Manufacturing PMI in the United States hit a four-month low of 49.9 in April, the preliminary S&P Global Services PMI in April was 50.9, a five-month low, and the preliminary S&P Global Composite PMI in April was 50.9, a four-month low.
Analysts believe that a slowdown in manufacturing activity will prompt the Fed to accelerate interest rate cuts this year, as lower borrowing costs typically spur economic growth.
As for the outlook for U.S. stocks, Goldman Sachs warned that U.S. stocks may fall further. In response to the question of whether the recent pullback in U.S. stocks meant that there was enough to reduce positions last week, Goldman Sachs said that Goldman Sachs clients have been trimming their exposure when the stock market has risen.
Speaking of perfect stocks, let's take a look at how A-shares performed today.
Today, the three major A-share indexes collectively rebounded, and continued to rise in late trading, with the Shanghai Composite Index up 0.76%, the Shenzhen Component Index up 0.74%, and the ChiNext Index up 0.7% as of the close.
A total of 4,194 stocks rose in the market, 1,026 stocks fell, and northbound funds bought a net of 4.6 billion yuan.
There is good news on the news side today, with a number of international investment banks updating their views on Chinese equities.
- Today, Hong Kong stocks continue to rise. ETFs related to Hong Kong stocks have risen by about 10% in the past three trading days. Moreover, iconic stocks such as Tencent Holdings and SenseTime Technology have risen sharply, detonating the A-share technology sector.
- The central bank said that the underlying logic of the current long-term treasury bond yield continues to decline is the lack of "safe assets" in the market, and with the issuance of ultra-long-term special treasury bonds in the future, the situation of "asset shortage" will be alleviated, and the yield of long-term treasury bonds will also rise.
- Yesterday, the news of US sanctions on Chinese bank stocks hit market sentiment. But today, according to media reports, the United States has not yet developed plans for the implementation of such measures.
- Goldman Sachs pointed out in the report that China's capital market reform may bring huge potential revaluation gains, and if A-shares can narrow the gap with the international average in terms of shareholder returns, corporate governance and institutional investor shareholding, there is 20% upside, and if they can catch up with the global leaders in these aspects, the revaluation room is as high as 40%.
Morgan Stanley also believes that global funds are returning to the Chinese stock market. As the bearish sentiment of some funds in the Chinese market has eased, the withdrawal of global long-term investors from A-shares and Hong Kong stocks has been suspended.
In addition to this, investors need to pay attention to the news on the international situation.
Israel is attacked!
On April 23, local time, the Lebanese Allah Party issued a statement saying that it launched a drone attack on two military headquarters near the city of Acre in northern Israel that day and hit the target.
In this regard, on April 23, local time, the Israel Defense Forces said that that morning, Israeli drones launched air strikes in southern Lebanon, killing Hussein Ali Azkul, a senior officer of the Lebanese Allah armed air defense force. In addition, Israeli forces also attacked the Arjunn area of Lebanon overnight, killing Sanjed Saravand, a senior officer of the Lebanese Allah's elite unit "Radwan".
In addition, there have been new developments in the Russia-Ukraine war.
On April 23, local time, the Russian Ministry of Defense released the latest information on the battle situation, saying that the Russian army destroyed the American-made MIM-23 "Hawk" air defense missile system for the first time in the area of the special military operation.
According to statistics, since the beginning of the special military operation, the Ukrainian army has accumulated losses of nearly 500,000 people.
It is also known that there was a riot at American universities.
In recent days, riots have erupted suddenly at American universities, and the situation is escalating. Mass protests erupted at more than 20 well-known universities, including Columbia University, Harvard, and Yale, to express their dissatisfaction with the Biden administration's diplomatic bias in favor of Israel. Some international students in the United States said that the protests were very intense.
Early in the morning of the 22nd local time, a large number of police officers dressed in riot gear rushed into the Connecticut campus of Yale University. Police then arrested several students and cleared the square where protesters had gathered. A spokesperson for the university confirmed that at least 47 protesters were handcuffed and pulled straight from campus in cars. These protesters will face disciplinary action from Yale University and may even be suspended.
Jintou.com: Analysis of gold trend on April 24
Image source: Jintou.com
From a technical point of view, gold prices closed below $2,325.90 yesterday, which makes the corrective bearish trend still valid for some time to come. For now, we are waiting for gold to fall to the next pullback target of $2260.60.
In addition, the 50-period exponential moving average (EMA) forms bearish pressure. It should be noted that if gold breaks above $2343.00, it will halt the bearish correction and push gold back into the main bullish trajectory.
Analysts expect gold prices to trade between support at $2,295.00 and resistance at $2,335.00 today, and the expected trend for gold prices today is bearish.