Gold bulls get hit! The price of gold plunged 40 dollars in one day! Lost 1820! Another big event in US politics: Pelosi says the House of Representatives will impeach President Donald Trump for a second time.

Monday (January 11) sub-market intraday, the dollar index maintained a strong rebound trend, now near 90.45. Spot gold fell sharply, trading at $1,827 an ounce, after falling below the $1,820 mark earlier, $40 off the day’s high. There will also be major events in US politics this week, with the Speaker of the House of Representatives Nancy Pelosi saying the House will begin the legislative process to impeach President Trump for a second time.

At one point, gold was down $1,820

Spot gold briefly fell to around $1,845 an ounce as Asian trading opened on Monday, but quickly rallied more than $10 to hit as high as $1,866.78.

However, as the dollar rallied strongly, gold came under significant downward pressure, hitting as low as $1,816.76 an ounce.

According to Economies.com, gold has more room to fall after falling below $1,838.10 an ounce, with a target of $1,665.00.

If gold were to consolidate above $1,838.10 an ounce, that would trigger a rally attempt, with an initial target of $1,890.00 an ounce, Economies.com said.

Gold tumbled more than 4 per cent on Friday as the precious metal was hit by the prospect of a smooth transfer of power in Washington and a surge in US Treasury yields.

Spot gold settled Friday at $1,848.86 an ounce, down $64.95, or 2.39%, from an intraday low of $1,828.09. Spot gold fell $49.42, or 2.60 percent, last week, its worst week since November.

The Democratic-controlled Senate raised the market’s bets on a big stimulus package, sending the yield on the benchmark 10-year Treasury note to its highest level since March.

Jeffrey Sica, founder of Circle Squared Alternative Investments, said there has been some “temporary profit-taking” since U.S. President Donald Trump agreed to an orderly transition of power.

Edward Moya, senior market analyst at OANDA, said: “For many investors, gold is undergoing a major fundamental shift away from the safe-haven trade. You could see some strong flows in the US Treasury market, which has taken some of the appeal out of gold.”

While gold was often seen, especially last year, as a hedge against inflation that might result from broad stimulus, that has changed, with the opportunity cost of holding gold increasing as bond yields have risen.

“We’re going to see more stimulus, and that’s ultimately pushing interest rates higher,” said Bart Melek, head of commodity strategy at TD Securities.

In the United States, Democrats Jon Ossoff and Raphael Warnock have defeated Republicans David Perdue and Kelly Loeffler respectively in a run-off election for the Georgia Senate. With the Democrats in control of the Senate, Mr. Biden will face less resistance to a big stimulus package.

US President-elect Joe Biden said Wednesday he will push for a new trillion-dollar economic stimulus package as soon as he takes office.

“The money needs to be spent now,” Biden said. “The whole package will cost trillions of dollars. “To prevent a collapse or a serious deterioration of the economy this year, we should make huge investments now.” Biden said details of the stimulus plan would be released on Thursday.

“Investors are about to write out the blue tide playbook,” Paul O ‘Connor, head of cross asset at Janus Henderson Investors, wrote in a note. “A Democratic sweep of Congress should lift expectations for US economic growth, which obviously has a significant impact on Treasury yields.”

Matthew Luzzetti, chief economist for the United States at Deutsche Bank, said the United States was on track to provide another $750 billion to $1 trillion in rescue packages this year, on top of the $900 billion stimulus agreed last month.

Pelosi: The House will impeach Trump a second time

In a letter, House Speaker Nancy Pelosi said the House would initiate legislation to impeach Mr. Trump for a second time. The House of Representatives will vote on impeachment on Tuesday, Pelosi said.

Under the U.S. Constitution, the president and other officials can be impeached and removed from office by Congress if they are found guilty of “treason, bribery, or other high crimes or misdemeanors” before the end of their terms. The House of Representatives has the power to initiate impeachment, while the Senate has the power to try impeachment.

In a letter to lawmakers on Sunday, Pelosi said the House of Representatives would take up legislation to impeach President Donald Trump, saying an attack on the Capitol by his followers posed a mortal threat to American democracy.

Pelosi also issued an “ultimatum” to Vice President Mike Pence, calling on him to invoke the 25th Amendment to remove Trump from office, or proceed with an impeachment vote, which means Trump will most likely become the first president to be impeached twice in the history of the United States.

Ms. Pelosi plans to seek a vote early this week on a draft resolution that calls on Mr. Pence and cabinet officials to invoke the 25th Amendment. According to the rules, when the House is not in session, any dissent will reject the resolution. Pelosi would then introduce the resolution in the House of Representatives, which would give Pence and cabinet officials just 24 hours to remove them.

On Jan. 9, Ms. Pelosi held a conference call with key members of her team and sent a letter to colleagues reiterating that Mr. Trump must be held accountable.

“The House of Representatives will act urgently to protect the Constitution and democracy of the United States because of the imminent threat posed by President Trump to both,” Pelosi said in a statement. Trump’s constant attacks on American democracy have heightened the fear of the American people, so we need to act quickly.”

As the uproar over the impeachment plan intensified, House Democrats were expected to vote and pass the impeachment bill early this week, aimed at quickly condemning and blocking Mr. Trump’s actions, delaying the impeachment trial for 100 days and helping Democratic presidential nominee Joe Biden keep his focus on other priorities.

After a riot at the US Capitol that left five people dead, a growing number of Republicans are saying publicly that Mr Trump should have been removed from office by January 20. Adam Kinzinger became the first Republican Congressman to publicly call for President Donald Trump’s removal from office.

Sen. Lisa Murkowski (R., Alaska) added her voice to those calling for Trump’s impeachment, calling on him to resign as soon as possible and stay out of the current turmoil. “I don’t think Donald Trump is qualified to be president, I don’t think he’s qualified to run the office, I don’t even think he’s qualified in any way to run,” she said. “He just needs to go.”

US President-elect Joe Biden said on Tuesday that he has long considered President Donald Trump “incompetent” and that it is up to Congress to decide whether to bring a second impeachment vote against him.

Under the US constitution, if impeachment is successful, the Senate can bar Mr. Trump from holding public office again, meaning he cannot run for president again.

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