On Thursday (December 31) in the Asian session, the DOLLAR index short-term sharp rise, near the 89.70 level; Spot gold fell sharply in the short term and fell below $1,890 an ounce to as low as $1,888.21 an ounce. Senate Majority Leader Mitch McConnell again rejected a proposal by Senate Democratic leader Charles Schumer to hold a vote on a $2,000 check as Congress has yet to agree on how much money to pay for a new bailout bill. Negative developments on U.S. fiscal stimulus weighed on gold prices. However, fears about the economic impact of the COVID-19 outbreak capped gold’s losses with a flight to safety sparked by news that the US Centres for Disease Control and Prevention said it was likely that the virus had spread from person to person in the US.
Senate Majority Leader Mitch McConnell said On Thursday that a bill issuing $2,000 in house checks would not pass the Senate quickly.
McConnell said he would oppose the bill, although the House of Representatives voted on December 28 to increase direct individual stimulus payments from $600 to $2,000 per person. He said the bill would not “pass quickly” in the Senate.
McConnell said he would vote on the bill along with two other demands made by U.S. President Donald Trump. Without a vote on all three, the bill will “get nowhere” in the Senate.
Mr. McConnell has introduced legislation that would link the increase in checks to measures Mr. Trump supports related to Internet platforms and elections.
“The Senate is not going to separate the three issues that President Trump has linked together just because Democrats are afraid to address two of them,” McConnell said on the Senate floor December 30.
Senate Minority Leader Charles Schumer had sought an anonymous vote on December 29 to pass a $2,000 cash handout to fight the epidemic, but McConnell refused. McConnell noted that the Senate will address three of President Trump’s demands this week, including the amount of individual bailout subsidies, election fraud, and a bill exempting technology companies from liability for user content.
“The Senate will initiate a vote to increase relief checks to $2,000, repeal Section 230, and begin investigating fraud in this year’s election,” Mr Trump tweeted.
“The Senate will begin to focus on these three priorities this week,” Mr McConnell said on December 29th. He did not explain when or if a vote would be held.
Investors are still awaiting a January 5 runoff in Georgia, which will determine which party will control the U.S. Senate, where more stimulus measures are expected from the Democratic-controlled house and Senate.
Avtar Sandu, senior commodity manager at Phillip Futures, said in a report that fiscal policy is likely to remain loose in the Democratic-controlled Senate, which will weigh on the dollar and favor precious metals.
Gold is seen as a hedge against inflation and currency debasement, which could be the result of massive stimulus measures.
Negative developments on U.S. fiscal stimulus helped the dollar rebound in intraday trading on Thursday, with the dollar index touching 89.68. Dollar rebound bearish gold trend.
According to Stephen Innes, chief global market strategist at Axi, gold may need further dollar weakness for gold to climb back above the $1,900 an ounce mark.
Oanda analyst Edward Moya said in a research note that the final number of seats in the U.S. Senate controlled by both parties, as well as the bailout measures taken after Biden takes office, will be the next factor affecting gold prices.
The novel coronavirus is feared to have spread from person to person in the United States
The COVID-19 virus, which emerged in the UK, has recently spread to other countries, including Denmark, Germany, Switzerland, France, Belgium, Australia, the Netherlands, Japan, Spain, Canada and South Korea. According to statistics, novel Coronavirus infected patients have been found in more than ten countries. On December 29 local time, Colorado health officials reported the first case of a novel coronavirus infection in the state, the first such case in the United States. The CENTERS for Disease Control and Prevention (CDC) subsequently issued a statement saying that more novel coronavirus infections with the mutation may be discovered in the coming days.
On December 30 local time, California Governor Gavin Newson said that a mutation novel Coronavirus, originally discovered in The UK, has now been discovered in California. “We were informed that novel Coronavirus variants that have apparently been discovered from the UK and other parts of the world were discovered in Colorado yesterday and are now found in California and Southern California,” said Newson.
The first confirmed case of the novel coronavirus in Colorado has no documented travel history, suggesting the virus is likely to have spread from person to person in the United States, CDC director Henry Walker said On December 30. Walker said the new, more infectious strain of the novel coronavirus could lead to more cases and put more strain on the US’s already “overburdened health care system”.
Phillip Streible, chief market strategist at Blue Line Futures, said last week: “If the new strain does enter the U.S. and reinfects people, it could really cause some additional economic damage, which could be the next positive for gold.”
Novel Coronavirus variants “are likely to have spread across the United States and may have a significant number by now,” said former FDA Commissioner Scott Gottlieb on December 27.
World real-time statistics show that the cumulative number of confirmed CASES of COVID-19 in the United States has exceeded 20.21 million and the cumulative number of deaths has exceeded 350,000. The new outbreak model, released by the Institute for Health Statistical Assessment at the University of Washington in the US, predicts that the cumulative number of COVID-19 deaths in the US could reach 562,000 by April 1.
According to data released by the Atlantic’s National Epidemic Tracking Project, the number of COVID-19 patients hospitalized in the United States has reached 125,220, a record since the outbreak began, with 23,069 patients being treated in intensive care units (icUs).
On December 30 local time, British Prime Minister Boris Johnson said that 60% of confirmed CASES of COVID-19 in the UK are now infected with the new variant of the virus. In an interview with the BBC, Mr Johnson said 60 per cent of confirmed cases in the UK were of new and more infectious strains of the virus. Asked if the government’s response was too slow to cause the outbreak, Johnson said the British government could not have foreseen that this was a new strain of the virus. Johnson said the virus had spread rapidly from its source, starting in east London and Kent and spreading across the UK.
According to the latest risk assessment released by the European Centre for Disease Prevention and Control (ECDC) on 29 December, as of 28, 14 countries, including the UK, had reported cases of novel coronavirus infection. Mike Catchple, chief scientist at the centre, warned there was a high risk of further spread of the mutated strain in Europe, which would lead to more hospitalisations and deaths and amplify the impact on healthcare systems. He called on member states to continue to implement existing non-drug interventions, while strengthening surveillance, detection, case tracing and detection mechanisms.
On December 22, local time, WORLD Health Organization (WHO) released relevant information on a novel Coronavirus reported in the United Kingdom. On 14 December, the United Kingdom reported to WHO that a new novel Coronavirus variant had been discovered through viral gene sequencing. Preliminary analysis showed that the variant was more likely to spread from person to person, with an estimated 40 to 70 percent increase in infectivity and 0.4 in the transmission index between 1.5 and 1.7.