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Original title: International gold prices have fallen from their highs for more than one month, and are still expected to close for three consecutive weeks; US lawmakers from both parties have jointly ruled out a negative option
On Friday (December 18), international gold prices fell due to the rebound of the US dollar. Earlier, due to the increased hopes of the US stimulus policy, the price of gold hit a record high of $1,896.25 per ounce in more than one month, and is expected to close for three consecutive weeks. US lawmakers from both parties said that the worsening of the new crown epidemic means that failure to reach a stimulus agreement is no longer an option.
At 15:30 Beijing time, spot gold fell 0.21% to US$1,881.63 per ounce;
Dollar indexFloating 0.09% to 89.930.
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DailyFX analyst Yang Yan believes: “The US fiscal stimulus has been digested more or less… So traders are trying to lock in profits before the weekend.” However, under the support of the Fed’s dovish policy and the weaker U.S. dollar, if it breaks through $1892 Area, may suggest further rise, resistance is at $1910.
As the new crown infection cases in the United States set a record high, this has put pressure on congressmen from both parties to pass a new round of assistance programs to end months of mutual accusations and inaction. Members of both parties said that the worsening of the new crown epidemic means that failure to reach a stimulus agreement is no longer an option.
The rapid increase in the number of hospitalizations and mortality in the United States is also worrying. So far, there have been more than 17.62 million infections and nearly 320,000 deaths, ranking first in the world. Members of both parties have expressed that they want to avoid a government shutdown.
The leaders of the House and Senate are now negotiating a bill of approximately US$900 billion, which will be added to the US$1.4 trillion federal financing plan through September next year. The financing bill is a temporary measure to extend spending and needs to be approved before Friday to avoid a large-scale federal government shutdown.
Han Tan, a market analyst at FXTM, said that although the stimulus agreement may boost gold prices, a sustained increase may require signs of a significant increase in inflationary pressures.
Analysts also said that the Fed’s commitment to continue to purchase debt until the economy returns to full employment and the inflation target reaches 2% “makes greater progress” will also support gold.
Michael Langford, director of consulting firm AirGuide, said that the gold bulls face a lot of noise, but as the US government and the Federal Reserve make the right voice for further stimulus and support for the economy, the price of gold may rise again to more than $1,900 by the end of the year.
Spot gold looks at $1,904
Spot gold has started an upward ((3)) wave trend from 1819 US dollars and has broken through the 61.8% target of 1888 US dollars. The new resistance level above looks to the 74.6% target of 1904 US dollars. ((3)) Wave is the sub-wave of the upward i wave that started from 1764 USD, and the i wave is the sub-wave of the upward (i) wave that also started from 1764 USD.
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On the daily chart, the price of gold has started an upward wave ((iii)) from $1764, and wave (i) is a sub-wave of wave ((iii)). ((Iii)) Wave is a sub-wave of five upward waves that started from US$1451. The target of 23.6% of wave ((iii)) is US$1911.
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