Gold Investing: The last US Presidential debate is over! Stimulus rumors continue to go viral! Gold 1900 unstable trend!

Gold continued to trade in a narrow range above $1,900, while silver continued to fall as the final U.S. presidential debate of 2020 drew to a close on Thursday.

The final debate of the US presidential election will be held in Tennessee from 9pm to 10.30pm on Thursday (October 22). The six themes of the debate are: “Fighting coVID-19”, “American Family”, “Race in America”, “climate change”, “National security” and “leadership”.

The foreign exchange market was slightly weaker. The expected “mayhem II” debate did not take place. At least both candidates can say what they want to say. Both fared better than in the last debate.

The two men remain deeply divided over the pandemic and whether the President is doing the right thing in response.

The host did an excellent job of controlling the room. As for the winner of this debate? It’s a tie, so to speak. Now it’s a race to the finish.

The polls now give Biden the lead. But elections are more about the electoral College than the popular vote, and that’s how the 2016 race has changed.

Before the debate, the dollar had been rising. Money flowing into the dollar is money in search of safety. Disappointment with the stimulus deal may be part of the reason.

For now, the dollar is still slightly up and not as low as it was before the debate.

S&p futures have now turned positive, with the index up 0.14 per cent at 3,454. The upward trend could be attributed to the debate being more like a debate than the Shouting and screaming of the first debate.

Looking ahead to the session, another theme traders will focus on is coronavirus stimulus trading.

Rumor has it that the White House has proposed a $1.9 trillion stimulus plan. But both Mr. McConnell and Ms. Pelosi said it would be difficult to reach an agreement before the election.

White House Chief of Staff Mark Meadows said in an interview with CNN that the coronavirus relief talks had entered a new phase, with both sides discussing the issue. Trump is willing to step up his coronavirus stimulus package, including direct payments to families. The coronavirus relief programme is currently at $1.9tn.

In an interview with CBS news, Senate Majority Leader Mitch McConnell said there is not enough time for a vote on the $2 trillion economic stimulus bill before the election.

Earlier, House Speaker Nancy Pelosi said Democrats told her they do not want a pre-election vote on the potential bailout bill unless the Senate votes on it before the election.

White House economic adviser Scott Kudlow also warned that while the two sides were still negotiating, it was clear their differences would not be resolved before the November 3 election.

Speaking to reporters at the White House, Kudlow said the White House and Democrats have reached a consensus on aid for the unemployed, small businesses, the airline industry and schools, but major policy differences remain. Kudlow said the differences do not directly threaten the epidemic and economic growth, or there is no need to rush to resolve them before the election.

Mike Zigmont, head of trading at Harvest Volatility Management, said: “These stimulus rumors continue to circulate wildly. But I think the market is getting used to these rumors, and each new rumor has less impact than in the past. The second stimulus has been a topic of discussion for a long time. Most of the economic consequences are already priced in.”

This is not good news for those hoping for a last-minute deal. As a result, gold tumbled yesterday, briefly falling past the 1900 level, and although it is now hovering around 1905, the rally is clearly lacking momentum.

Technical analysis:

The dollar

On the daily chart, the DOLLAR index yesterday stopped the 4-day downward trend, a strong rebound near the 93 mark, the day above this level. The daily chart MACD green momentum column weakened slightly, while the KDJ random index held steady above the oversold level, indicating that short-term bearish momentum is weakening and prices may stabilize.

On the 4-hour chart, the DOLLAR index.DXY has continued to rally after hitting a low of 92.47 and is now watching to see if its 50-date average of 93.30 can be breached. The MACD red momentum column gradually expanded, and the KDJ stochastic rebound approached the overbought level, indicating a strengthening of bullish momentum for the DOLLAR, short term or further higher.

gold

On daily charts, gold tumbled just above the 1900 level, trading in a tight range during the day. The daily chart MACD red momentum column remains weak, with the KDJ random index holding steady above the 50 level, indicating weak bullish momentum for gold, which is currently prone to volatility.

On the 4-hour chart, gold fell sharply yesterday as it briefly dipped below $1894, while the 100-date average of $1904 is now being watched for a break. The MACD green momentum column gradually weakened, and the KDJ random indicator approached the oversold level, indicating that there is still room for downside in the short term.

silver

On daily charts, silver retreated from a high to lose $25 yesterday and is trading in a narrow range around 24.65. The daily MACD red column of momentum remains weak, with the KDJ random index holding steady above the 50 level, indicating that silver’s bullish momentum is still in short supply or further volatility.

On the 4-hour chart, silver continues to move down but holds its 100-period moving average support, focusing on whether 24.35 can be a short-term bottom. The MACD green momentum column is gradually expanding and the KDJ random indicator is holding above the oversold level, indicating that bearish momentum is strengthening in silver and may move lower in the short term.

Fundamentals positive factors:

  1. U.S. House Of Representatives Speaker Nancy Pelosi said Thursday that negotiations with the Trump administration on a new financial rescue package have made progress and that legislation could be finalized “very soon.” — The prospect of a stimulus deal is good for gold.
  2. White House Chief of Staff Mark Meadows said Wednesday that the biggest sticking point in the novel Coronavirus agreement negotiations remains funding for state and local governments, but added that progress has been made toward an agreement. — THE U.S. stimulus is betting against the dollar.
  3. Pelosi has said a compromise bailout plan has been drafted, hinting that a deal with the White House could be near. — Betting that a U.S. stimulus deal is good for gold.
  4. A spokeswoman for Pelosi said she and Treasury Secretary Mnuchin “continued to narrow their differences” in their discussions on Monday, and Pelosi was hopeful of getting a “clear” message by the end of Tuesday that the New Corona-stimulus plan is likely to pass before the November 3 election. — Gold is still expected to benefit from the US financial rescue plan.

Fundamentals negative factors:

1.New claims for state unemployment benefits fell 55,000 last week to a seasonally adjusted 787,000, according to data released on Thursday, but the overall number remained relatively high. — Better-than-expected U.S. jobs data boosted the dollar and hurt gold.

  1. America’s new stimulus package is still stuck. Ms Pelosi had set a deadline on Tuesday to negotiate a rescue package before next Month’s election in March but has so far conspicuously failed to reach a deal. — The lack of a deal has put a brake on gold’s rise.

3.Senate Majority Leader mitches McConnell said On Monday that a vote on the stimulus bill would be held on Tuesday and Wednesday. About $500 billion, it would renew a small business loan program and provide more unemployment benefits, school aid, and money for virus testing. Smaller stimulus packages are bad for gold.

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