Gold Investment: Big day in US politics! Donald Trump, Joe Biden to fight over ‘tax gate’ Beware of gold riots!

Spot gold tried to gain a foothold above 1880 in the Asian session on Tuesday, breaking through $1,885 earlier and hitting as high as 1887.

Gold rallied strongly yesterday, rising $20 to break through the key 1,880 level as the dollar retreated from a two-month high ahead of this week’s US presidential debate, although a rebound in equities capped gains.

The first presidential debate of the 2020 presidential election will be held at Case Western Reserve University in Ohio from 9 p.m. to 10:30 p.m. local time on Sept. 29. President Donald Trump and former Vice President Joe Biden will go head-to-head.

The first presidential debate will focus on six topics, including the past of Trump and Biden, novel Coronavirus pandemic, Supreme Court Appointment, racial discrimination, economy and integrity elections. The six topics correspond to six debate sessions, each of which lasts 15 minutes. In each session, the moderator will first ask questions about the topic of the debate. Trump and Biden will each have two minutes to answer questions, with the remaining time for free debate.

Analysts say the exchange over tax avoidance is expected to be one of the inevitable issues.

The New York Times earlier reported that the Trump family has lost money in several businesses and is under severe financial pressure with more than $400 million in debt, most of which is due in four years. The report also noted that Mr Trump paid $750m in federal income taxes in his first year in office. In the previous 15 years, he had paid no personal income tax for 10.

The data also show that since becoming a presidential candidate, Trump has received large sums of money from lobbyists, politicians and foreign officials, benefiting his personal business operations.

According to the Hill on September 28, Nancy Pelosi, speaker of the US House of Representatives, launched a scathing attack on Donald Trump.

In an interview with MSNBC, Pelosi described Mr. Trump’s large payments to foreign governments as puzzling.

Pelosi added that it was unclear who Mr. Trump’s creditors were and whether the debt involved other countries, which could have implications for Mr. Trump, and that the issue should be viewed in a national security context.

Trump took to Twitter on September 28 to respond to a report in the New York Times that he had paid no federal income tax for most of the past two decades, saying he had paid millions of dollars in taxes and had little debt.

Technical analysis:

The dollar

On the daily chart, the DOLLAR index retreated from its highs yesterday and is now hovering above 94.10. The daily chart MACD red momentum column weakened slightly, while the KDJ random index held steady near the overbought level, indicating a slowdown in short-term bullish momentum or further volatility.

In the 4-hour chart, the DOLLAR index continued to decline after hitting a high of 94.75, falling as low as 94.10 to see if the 94 mark can be held. The MACD green momentum column continued to expand, with the KDJ stochastic approaching the oversold level, indicating that dollar bearish momentum has strengthened and may move lower in the short term.

gold

Gold rebounded strongly yesterday to $20 on daily charts and is now trying to climb further above the 1880 level. The daily MACD green momentum column weakened slightly, while the KDJ random index held steady around the oversold level, indicating a slowdown in gold bearish momentum or further volatile upside.

The 4-hour chart shows a strong rebound in gold prices rose above the 20 period moving average, further rebound in the day, above 1900 constituted a significant pressure. The MACD red momentum column is gradually expanding, and the KDJ random index is hitting the overbought level, indicating that bullish momentum for gold is strengthening, short term or rising.

silver

Silver surged more than 3 per cent on daily charts and is now trading above $23.50. The daily MACD green momentum column gradually weakened, with the KDJ random index trading above oversold levels, indicating less bearish momentum for silver and further price volatility.

After hitting a low of $21.65, silver continues to move higher in the 4-hour chart, with the focus now on breaking through $24 resistance. The MACD red momentum column was largely stable, while the KDJ random index hit an overbought level, indicating solid bullish momentum for silver and a small correction after a sharp short-term warning

Fundamentals positive factors:

1.Nancy Pelosi, the Speaker of the US House of Representatives, said that President Trump’s reported debt troubles raised national security issues and that the public should have a right to know who he owes money to.

  1. House Speaker Nancy Pelosi said Sunday that as negotiations continue, she believes an agreement can be reached with the White House on a new coronave-aid package.
  2. The United States has imposed restrictions on exports to China’s largest chipmaker SMIC Corp because of “unacceptable risks” of equipment supplied to the chip maker that could be used for military purposes, media including Reuters and the New York Times reported on Saturday.

Fundamentals negative factors:

  1. Wall Street closed sharply higher on Monday as investors sought bargains in sectors hardest hit by the coVID-19 recession.
  2. China’s national Bureau of Statistics said Sunday that profits at large industrial companies rose for the fourth straight month in August. The news sent stocks higher, limiting gold’s gains.

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