First in history! Biden passed 80 million votes! Gold may still plunge risk! Us GDP hits with Fed Minutes today!

The U.S. dollar index.DXY slipped slightly in intraday trading on Wednesday, trading around 92.10. Spot gold rebounded slightly to trade at around $1,810 an ounce. Gold plunged nearly $30 on Tuesday to near $1,800 an ounce on optimism about the coronavirus vaccine and reduced uncertainty about the outcome of the U.S. presidential election. Investors need to keep an eye on this level, which could lead to another sell-off. Investors will be greeted with minutes from the Federal Reserve meeting and a host of important DATA, including U.S. GDP, that are expected to weigh on market movements.

Gold tumbled on Tuesday, briefly approaching $1,800 an ounce, as progress on a coVID-19 vaccine and hopes for a quick White House transition prompted investors to move into riskier assets. Spot gold closed at $1807.55 an ounce, down $29.49, or 1.61 percent, after touching as low as $1800.32 an ounce.

Astrazeneca, the British pharmaceutical giant, said on Monday that interim analysis of clinical trials showed that its coronavirus vaccine provided an average of 70 percent protection against the virus. Pfizer and Moderna have also reported a series of encouraging results from vaccine trials in recent weeks, with coVID-19 efficacy of about 95 percent. The introduction of the coVID-19 vaccine will boost economic performance and reduce demand for safe-haven gold.

Craig Erlam, analyst at Oanda, said any positive news on vaccines would be negative for gold, which is expected to dip below $1,800 after breaking support of $1,850 an ounce, a level that could soon be tested.

“We have heard about the vaccine, seen US Treasury yields rise and even the dollar depreciate, and gold is not benefiting… “That’s a very bad signal for gold and means underlying weakness is building up.” A break below the key support level of $1,800 an ounce would trigger further declines, Boele added.

XM Investment analyst Marios Hadjikyriacos also reported on Tuesday that gold has suffered the most from the coVID-19 euphoria.

David Madden, senior market strategist at CMC Markets, said in a note to clients that he expects gold to fall as low as $1,800 an ounce as the dollar strengthens further.

Gold continued its slide on Tuesday and briefly nears its main waiting target of $1,794.84 an ounce, according to Economies.com. Investors need to be wary of afternoon trading and should keep an eye on the $1,794.84 / oz level, which could lead to further declines and a near-term move towards the $1,765.00 / oz area.

“Some of the safe-haven status of the gold market has been taken away by more economic optimism generated by vaccines,” said David Meger, head of metals trading at High Ridge Futures. Less political concern about the future also reduces the demand for safe haven assets.”

Pompeo said the State Department had begun the transition process

The head of the GENERAL Services Administration, Emily Murphy, told Biden, the Democratic presidential candidate, that the Trump administration was providing federal resources for his transition. Expectations of a smooth transition for the White House have reduced uncertainty and undermined safe-haven demand for gold.

Biden became the first US presidential candidate to win more than 80 million votes, with more than 80.11 million as of Late November, compared to more than 73.8 million for President Donald Trump, CNN reported on November 24.

CNN noted that Biden’s Numbers are likely to increase in the coming days as votes continue to be counted across the country.

Chintan Karnani, chief market analyst at Insignia Consultants, noted that the positive vaccine news and smooth development of Biden’s transition White House contributed to the fall in gold prices.

Kyle Rodda, analyst at IG Markets, said a smooth transition of power in the United States would also be more positive for its economic recovery, meaning there is a bit less market risk. “Gold’s break below the support level of $1,840 / oz suggests further weakness to the $1,700 / oz level before buyers re-enter the market.”

Us Secretary of State Mike Pompeo said on November 24 that the State Department had begun the process of transition and would complete all work as required by law. A day earlier, the General Services Administration (GSA) informed Mr. Biden that the transition could officially begin.

In an interview with Fox News, Mr Pompeo said: “Today we started the transition process to see what the GSA decides to do and do all those things that are required by law. We will make it happen.” Pompeo also said he had not contacted Blinken, Biden’s choice for secretary of state, but said he was looking forward to it.

The Office of the Director of National Intelligence (ODNI) said the White House approved the daily presidential briefing for Biden’s team as part of its support for the transition. Separately, according to the Hill, a White House official confirmed that Trump signed a “briefing sharing” agreement. The President’s daily briefing on national security threats and intelligence is designed to prepare the President, his security advisers and senior White House officials to make decisions in real time.

“Under the Presidential Transition Act, ODNI will provide the necessary support to the [Biden] transition team,” an ODNI official said November 24. This afternoon, the White House approved ODNI to provide daily briefings for the President as part of the transition support.

In the afternoon of November 23, CNN received a letter from GSA Director Emily Murphy saying that GSA had informed Democratic presidential candidate Joe Biden that the agency was ready to begin a formal transition process. The move would also allow the transition process to begin, allow current agency officials to coordinate with the incoming Biden team, and provide millions of dollars in government funding for the transition.

Us GDP hits with Fed minutes

Investors will be greeted with data on U.S. GDP, the Heigen University consumer confidence index, new home sales, and jobless claims, with GDP as the number one priority.

On Wednesday, at 21:30 Hong Kong time, the US will release a revised estimate of its gross domestic product for the third quarter, which is expected to show annualised growth of 33.1 per cent.

The Minutes of the Federal Open Market Committee’s November monetary policy meeting will be released at 03:00 Hong Kong time on Thursday.

Analysts said the Fed minutes could provide a clue to further action. With coVID-19 spreading rapidly in the US, risks to the job market are growing and Fed officials are likely to discuss issues such as increasing asset purchases.

The FOMC was unchanged at 0-0.25 per cent on November 5, local time, and its asset purchase programme was unchanged.

The LANGUAGE in the FOMC statement after the meeting was little changed, although the committee noted that the U.S. economy was growing but had not yet reached the levels seen before the novel Coronavirus pandemic. “Economic activity and employment have continued to recover, but remain well below the levels seen at the start of the year,” the statement said.

Federal Reserve Chairman Colin Powell said last Tuesday that the economic recovery “has a long way to go” and the Fed pledged to use all its tools to support it if necessary.

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