Spot Gold is Strong and Expected to Stand Firmly

  • At 15:58 GMT, spot gold rose at 0.54% to $1,909.57 per ounce.
  • Speaker Pelosi said last Sunday that Congress and the Trump administration still have differences in reaching a broad epidemic relief plan.
  • The number of cases in North America, Central America and South America accounted for approximately 47.27% of the global total.

On Monday, spot gold strengthened and is expected to stand above the $ 1,900 level, as the Speaker of the U.S. House of Representatives, Rep. Nancy Pelosi (D-CA), boosted hopes that the new coronavirus epidemic relief bill will be passed before the presidential election.

At 15:58 GMT, spot gold rose at 0.54% to $1,909.57 per ounce. The US dollar index fell at 0.09% to 93.625. OCBC Bank economist Howie Lee said:

“We expected to be hovering around $1,900, the market sentiment cautious next two days, the US economy can get a new fiscal stimulus, which is a key factor in changing the rules of the game.”

Gold bars

Speaker Pelosi said last Sunday that Congress and the Trump administration still have differences in reaching a broad epidemic relief plan.

Although she is happy to see that the legislation may be passed before election day, Speaker Pelosi also admitted that if an agreement is to be reached, it must be completed within the next 48 hours.

The White House previously proposed a $1.8 trillion stimulus proposal. Speaker Pelosi rejected the proposal, and insisted on her $2.2 trillion rescue and stimulus plan. However, Republicans, who control the Senate, are unwilling to pass another massive bailout bill.

Senate Majority Leader Mitch McConnell (K-KY) said that the Senate will vote on a simplified version of a $500 billion proposal for specific needs on Wednesday. The Democratic Party has rejected the so-called streamlined bill, saying that much more is really needed.

Gold has soared nearly 26% this year. Stephen Innes, chief global market strategist at Axi, said:

“Institutional investors will maintain a long bargain-hunting strategy, because any new fiscal stimulus measures will strengthen the hedging function of gold.”

The number of global new coronavirus cases exceeded 40 million on Monday, and the start of winter in the northern hemisphere has contributed to the return of the epidemic. This is a new uncertain factor for the global economic recovery, and many European countries have promulgated new travel restrictions.

Gold products

The United States, India, and Brazil remain the most severely affected countries in the world. The number of cases in North America, Central America and South America accounted for approximately 47.27% of the global total.

About 247 people are infected for every 10,000 people in the United States, and the ratios for every 10,000 people in India and Brazil are 55 and 248, respectively.

On the hourly chart, the adjustment wave ii trend of gold price has been extended. If the price of gold ends wave ii at $1,882 and starts wave iii, the price of gold is expected to rise above $1,898, which is the 23.6% target of wave iii. The upper resistance looks at the 50% target of $1,917 and the 61.8% target of $1,925.

Waves ii and iii are both sub-waves of the upward wave (i) that started at $1,849, and (i) are the sub-waves of the upward wave (v) that have also started since then. On the daily chart, the resistance level above the gold price is towards $1,979. It is a sub-wave of the upward wave (iii) that started from $1,668.

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Joyce Davis

My history goes back to 2002 and I  worked as a reporter, interviewer, news editor, copy editor, managing editor, newsletter founder, almanac profiler, and news radio broadcaster.

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