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(Original title: Gold’s slide recoils from bullish momentum! Old and new US election risks will provide additional support to the Brexit drama)
FX168 Financial News (Hong Kong) reported that gold fell from its mid-September high to minimize its momentum. The dispute over the “television series” of the US general election is not over yet, and the number of newly diagnosed cases in the United States has reached a new high each day, prompting the arrival of optimism. However, due to the lack of new market risk catalysts, investors are in a dormant state and unwilling to make changes before each event has a definitive response.
The price of gold is trading around $ 1953.50 this week, while staying in a range of $ 1950 to $ 1956 at the close of last Friday (November 6). The recent sluggishness of gold and silver can be attributed to the uncertainty of the US political system Current US President Trump defied Democrat Biden’s victory announcement. The new corona epidemic and Brexit are also important for investors in precious metals. It will be an obstacle.
Fundamental Analysis: Old and New US Election Risks Go Hand in Hand, and Brexit Provides Additional Support
After Democrat Biden issued a “victory declaration” to the nation last Saturday (Nov. 7), current US President Trump quoted former House Speaker and legal analysts as saying that many testimonies they showed electoral fraud. And he has filed multiple lawsuits for improper vote handling. Not only is Trump trying to prevent Biden from entering the White House, but many Republicans have also questioned Biden, making it difficult for him to make decisions in the future.
United States Republican Senator Lindsey Olin Graham said in a press release that he received sworn testimony from the Trump camp. The testimony was written by Richard Hopkins, a postal worker in Erie, Pennsylvania. Hopkins) provided. The US “Capitol Hill” reported that Hopkins testified in sworn testimony that Erie Postmaster Robert Weisenbach (Robert Weisenbach) told workers that he “reversed the postmark on the ballot so that the ballots could be viewed. “. It appears to have been collected on November 3, 2020, even though these votes were collected as of November 4. “
“Capitol Hill” believes that Graham’s comments echoed Trump’s earlier statement after the US media collectively announced “Biden’s victory.” Trump said in a statement that the news network is helping Biden “falsely pose as a winner.” Earlier news items noted that Jared Corey Krushner, Trump’s son-in-law and senior White House adviser Reed Kushner had contacted Trump regarding his admission of defeat. Trump’s campaign adviser Jason Miller wrote in a Twitter post: “Considering that the election results in many states are still uncertain, as well as gross violations and lack of transparency in voting in some states, it is recommends that Trang Pu seek all available legal remedies to ensure accuracy. “
The United States had the highest number of new cases of the new corona epidemic last week. As of today (November 9), the total number of confirmed cases has exceeded 10 million. After Biden announced his victory, he planned to make the new crown epidemic a priority for the national government. He plans to announce a task force on the epidemic made up of 12 experts tomorrow (November 10). Investors expect more stimulus risks. The new corona vaccine is unlikely to arrive before 2021, so the economy is expected to continue to decline in the coming weeks, and this will bring more risk considerations for investors.
Brexit provides additional support for American policy and the new corona epidemic, forming another safe haven. The latest news from Michel Barnier, the European Union’s chief negotiator in London, shows that the European Union is optimistic about how to tackle key Brexit issues, but has not reached any agreement ahead of the EU summit scheduled for mid of November.
Against the background of falling gold prices, the stock market has exploded in the past week and global stock markets have a chance to breathe. However, the yield on the 10-year US Treasury bond in the United States has recovered to more than 0.8% and is currently around 0.81%.
Technical analysis: the price of gold has completed a contrary correction and is expected to rebound sharply in the short term
Gold formed a low in trading last Monday (Nov 2), but rallied sharply this past weekend. The price of gold rose to Friday’s (November 6) high of $ 1961.80, and then fell slightly. The rising trend line that started on September 21 is currently at $ 1,953, limiting gold’s rally ahead of the September 16 high of $ 1,973, but the axis line on Friday (November 6) gives hope. to sellers. .
Gold-Eagle analyst Jim Curry noted that gold prices are expected to rebound sharply in the short term, and medium-term investors should now consider buying at the lowest point of the correction phase. With the fall in mid-September, the opposite correction of the price of gold was completed. If correct, the ideal approach is to look for new all-time highs in the coming weeks.
