Secretary of State Mike Pompeo made an announcement on Wednesday that the State Department no longer considered Hong Kong to have significant autonomy under Chinese rule, a move that indicated the Trump administration was likely to end some or all of the United States government’s special trade and economic relations with the territory in southern China. Chinese parliament passed the controversial Hong Kong security law. Also warned US  for the consequences if it continues the interference. 

It should be noted that even Us is accusing China for the spread of the virus and not warning the globe regarding the virus beforehand. Federal Reserve Chairman Jerome Powell did not suggest pushing official interest rates below zero in a video conference with former Fed Vice-Chair Alan Blinder. Global Analysts suggest the need for more monetary stimulus for increasing the positive sentiments in the market.

Jobless claims came down for the first time since the after the outbreak of coronavirus, and figures released on Friday showed personal income rising and spending falling as consumers were forced into involuntary savings by lockdowns.

“This is the basis for believing that spending will rebound strongly as lockdowns are eased, but it will also make it easier for Republicans in the Senate to keep pushing back on the idea of further stimulus, for a while at least,” said Pantheon Macroeconomics chief economist Ian Shepherdson.

 XAU/USD 4 Hour chart:

Support: 1707.6(S1), 1695(S2), 1685(S3).

Resistance: 1730.1(R1), 1740.2(R2), 1752.7(R3).

The Economic recovery hopes and US-China tension has created an uptrend for XAU/USD.