Gold 1875! COVID-19 and Brexit are in full swing! China’s November inflation into the aftermarket focus!

Gold hovered near a two-week high and broke through $1,850 on cautious optimism, challenging the upward path to $1,875. The STANDARD & Poor’s 500-stock index also hit a record high, while the yield on the 10-year Treasury note was depressed. Gold’s three big risk signals are coming back. The bull market is underpinned by the COVID-19 vaccine, Brexit and the rigidity of the US stimulus package. Next on investors’ radar screen will be China’s CPI and November inflation data, which are expected to be the focus of gold’s aftermarket.

Fundamental analysis: COVID-19 vaccine, Brexit, US stimulus package, China data

As U.S. Democrats and Republicans moved closer to a long-awaited agreement on a COVID-19 economic stimulus package, Senate Democratic Leader Chuck Schumer stressed that ongoing negotiations between the two parties in the U.S. will be the best way to reach COVID-19 mitigation legislation. U.S. House Of Representatives Republican Leader Mitch McConnell said he favored a basic novel Coronavirus bailout, reiterating the need to eliminate provisions that are dividing state and local government aid. But so far, the two parties are still in the process of negotiating a final version of the stimulus package.

In contrast to the consensus reached by American policymakers, British EU diplomats are still unable to agree on a trade deal for Brexit. Neither the right to fish in British waters nor the principle of fair play are willing to compromise first. The British cabinet minister Michael Gove has announced a trade deal in principle, but there is still a gap in terms of communication with EU leaders. British Prime Minister Boris Johnson will meet Eu President Ursula von der Leyen in Brussels on Wednesday (December 10) to make a final push and resolve the issue.

A 90-year-old woman has become The world’s first recipient of Pfizer’s COVID-19 vaccine after British regulators first approved its use, The Guardian reported. Margaret Keenan has been given the injection in Coventry at 6.45am local time in what is seen as the start of Britain’s historic mass vaccination programme in the biggest vaccination campaign in the history of the NHS. The vaccine will be administered at 50 hospital centres across the country, and patients aged 80 and over who have been hospitalized or discharged from hospital will be the first to receive it.

Britain expects to receive millions of doses of the vaccine by the end of the year, according to Health Secretary William Hancock. There are five different options to overcome the logistical challenge of vaccines in the UK. Nursing homes in The UK will be vaccinated as soon as possible. With regard to the number of vaccines per day, we will update the data as the vaccine is released. With regard to the Oxford vaccine, we expect it to be approved in the coming weeks.

Canada is waiting to see if U.S. President Donald Trump will restrict Canada’s access to COVID-19 vaccine under the guise of “America First.” The New York Times reported that Pfizer may not be able to provide more vaccine to the United States until June of next year because it has already made commitments to other countries. Mr Trump is expected to sign an executive order on Wednesday local time to ensure THAT US citizens first receive us-made vaccines, but it is unclear how much impact this will have. But for the White House summit on vaccine discussions, both Pfizer and Moderna said they would not attend.

“We are very confident that Pfizer and other vaccine manufacturers that have contractual obligations to ship vaccines to Canada will be able to meet those obligations,” Dominic LeBlanc, Canada’s minister of Intergovernmental Affairs, said at a news conference in Ottawa. We have assumed that we should not be tied to a particular manufacturing site, so the contract also takes this into account. For example, Pfizer has a number of manufacturing facilities in Both Europe and the United States.” This is not the first time Mr Trump has tried to deny Canada access to health resources on the grounds of protectionist “America first” principles. As recently as April, Mr. Trump signed an order banning the export of personal protective equipment in an attempt to prevent THE U.S. -based 3M company from contacting Canadian buyers of American-made N95 masks, which are critical to limiting the spread of the virus.

Looking ahead, positive November inflation data from China are expected to raise intraday traders’ optimism, China CPI will draw attention, and trade, politics and novel Coronavirus focal points will continue to be risk catalysts.

Technical analysis:

Continued trading above $1,850 allows gold buyers to target a 50-day average near $1,878 to $1979. If that level is breached, the mid-November high will hover around $1,900. Meanwhile, a 21-day moving average near $1,845 added downside support.

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