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Original title: Right now! Short-term gold rises above $ 1,870, Trump threatens to “shock” the market or cause a last-minute reversal
FX168 Financial News (Hong Kong) reported on Wednesday (December 23) that the approach of the Christmas holidays caused thin market transactions. Trump threatened to veto the hard-earned stimulus bill, along with the emergence of a variant of the new corona virus in the UK, and the outlook for Brexit remains uncertain. Despite various uncertainties, European stocks rose slightly during the day, the US dollar is still on the defensive, and spot gold just surpassed US $ 1,870.
After hitting the 1860 mark yesterday,Gold priceIt tried to rally on the day, and is currently up more than US $ 10 above US $ 1,870, mainly due to the weakening of the US dollar, and investors are still happy to see the US stimulus plan, despite the fact that US President Trump threatened not to sign the stimulus bill.
(Source: FX168)
After months of fierce fighting, the US Congress finally approved a new rescue plan on Monday with concessions from both sides, but US President Trump threatened not to sign it.
Trump criticized the $ 900 billion epidemic aid bill passed by Congress in a video posted on Twitter Tuesday. He called on lawmakers to increase the payment directly to the public from $ 600 per person to $ 2,000 per person.
Trump said, “I am asking Congress to amend this bill to increase the ridiculously low direct payment from $ 600 per person to $ 2,000 per person, or $ 4,000 per couple.”
“I also ask Congress to immediately remove waste and unnecessary elements from this bill and present me with a proper bill, otherwise the next administration will have to come up with a new crown aid plan, and Maybe the next administration will pay for it. It will be me and we will complete this job, “Trump added.
Trump’s statement Tuesday night surprised many politicians in Washington.
It is worth mentioning that Trump did not use the word “veto” in his statement.; The media is predicting that Trump will resign on January 20, when Biden will be sworn in.
The White House did not oppose the bill before it passed, and all signs indicated that Trump would sign it. The Secretary of the Treasury of the United States, Steven Mnuchin, participated in the negotiation of the bill.
Hours earlier, Mnuchin, who represented the White House in negotiations with congressional leaders, issued a statement saying he was “satisfied” with the stimulus bill. He said the bill would “provide critical additional financial assistance to innocent American workers, families and businesses that were adversely affected by the new corona virus pandemic.”
The market was unfazed by Trump’s threat. US equities futures rallied again after a brief slide. European stocks are also rising slightly. Trading in the currency market is even calmer. Various reactions also suggest that the market believes that President Trump will sign at the last minute. This move.
Andrew Brenner, head of fixed income at NatAlliance, said in an emailed report after Trump posted the message“This is really … a joke. We personally think the president will sign the bill at the last minute … but the reality star will keep waiting until the end,” he said. “The bond market will close at two in the afternoon on Thursday and the stock market will close at one in the afternoon; you may have to wait until the last minute.”
The Speaker of the US House of Representatives, Nancy Pelosi, said in a tweet that Republicans will not increase the amount of the stimulus check that Trump wants in the negotiations. He said Democrats are preparing to pass Trump’s $ 2,000 check proposal to the House of Representatives for a vote this week.
Prior to this, Biden also stated that after taking office on January 20 next year, the new government will present a new aid plan as soon as possible, including the redistribution of money to all people.
In addition to paying attention to the US stimulus bill, the market is also focused on Brexit and variants of the new corona virus.
Regarding Brexit: a report suggested that the UK could reach a Brexit trade deal on Wednesday; But a British minister said on Wednesday that the UK and the EU have yet to reach a Brexit trade deal because the serious issue preventing Prime Minister Johnson from signing the deal remains unresolved.
As for the epidemic: France will reopen its borders to passengers entering from England on Wednesday and will end blocking measures aimed at preventing the spread of a new strain of the new coronavirus, which caused thousands of trucks to be stranded before Christmas.
Scientists say there is no evidence that the vaccine currently deployed in the UK cannot prevent this variant of the virus, but this possibility is starting to cause problems for traders.
Piet Haines Christiansen, chief analyst at Danske Bank, said similar news about Brexit and the epidemic on Tuesday failed to boost the market. He told clients: “At this stage, market participants are unwilling to open new positions, so even if the market fluctuates, they should be viewed from a low liquidity perspective.”
Since the market is still hopeful about the stimulus bill and the US dollar is still on the defensive, the price of gold once surpassed US $ 1,870. It has fallen for three consecutive days.
“The market awaits passage of the stimulus bill, which will support gold prices in the future,” said Jigar Trivedi, a commodities analyst at Mumbai brokerage Anand Rathi Shares. He also said that the rally in gold could continue until 2021, and the resistance level is close to the all-time high for gold prices of $ 2,072.5.
AirGuide’s chief corporate adviser Michael Langford said that since the market has taken in much of the uncertainty related to the epidemic and the US stimulus agreement, the price of gold will not change much in the coming weeks. If you’re going to go up, you need a boost from new unknown uncertainties. .
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