Spot gold continued to move in an extremely narrow range in early Asian trading on Monday, trading around $1,557, close to the key 1560 level, and awaiting further stimulus.
Gold rose slightly on Friday to close above the 1550 mark, but fell for the first time in six weeks on the week, down about 0.3 percent.
There were no major data releases in the session, focused on developments in the trump impeachment trial. The US Senate took the oath of office Wednesday to begin the impeachment trial of Donald Trump. Ahead of the senate’s formal trial of Mr. Trump’s impeachment on Tuesday, Democratic lawmakers submitted a 111-page document laying out arguments in support of their charges that Mr. Trump abused his power and obstructed Congress.
Trump’s legal team strongly denied the impeachment charges in a document. This is the first time Trump has formally responded to his two articles of impeachment.
The US Senate will begin its formal impeachment trial against Donald trump this week. The trumps are expected to file more detailed court documents on Wednesday, and the house of representatives is expected to respond on Wednesday. The White House and Republicans want the senate impeachment trial to be resolved quickly, preferably within two weeks, allowing Mr. Trump to celebrate his acquittal in time for his state of the union address on February 4.
Hareesh V, head of commodity research at Geojit Financial Services, said the market continued to watch the impact of the trade issue. “Gold investors are waiting for clearer economic guidance.”
SP Angel analyst Sergey Raevskiy noted that U.S. economic growth expectations and inflation expectations are not very good, thus providing support for gold, which is in a consolidation. “With the trade issue moving forward, investors are looking for other factors to drive gold prices.”
On the daily chart, the dollar index held on to Friday’s huge gains and is trading around 97.60, just above the key 50-day moving average. On a technical note, the MACD red momentum column expanded slightly, the RSI gauge was just above the 50 levels, and the KDJ gauge hit an overbought level.
On the four-hour chart, the dollar index rose sharply after hitting a previous low of 97.08 and peaked around 97.66, above all major averages. In terms of technical indicators, the MACD red momentum column expanded slightly, the RSI index hovered near the overbought level, and the KD index touched the overbought level, warning against the risk of short-term decline.
On the daily chart, gold continued its volatile pattern of previous days, trading below $1,560, still above the main moving average. In terms of technical indicators, MACD green kinetic energy column showed initial appearance, RSI index hovered above 50, and KDJ dropped below 50.
On the 4-hour chart, gold staged a choppy rally after hitting a previous low of $1,535, hitting a recent high above $1,560 on Friday and winding around the 60-session moving average. The technical indicators showed that the MACD red momentum column was very weak, the RSI index was slightly above the 50 levels, and the KD index rebounded close to the overbought level.
Fundamentals favorable factors:
- The University of Michigan’s confidence survey, released on Friday, January 17, showed a slight drop to 99.1 from 99.3 in early January. Conditions have improved, but the outlook has slipped.
2. The US Senate on Thursday formally accepted articles of impeachment against President Donald Trump, meaning the senate’s impeachment trial has officially begun. However, the 16th event is just one of many procedural activities ahead of the trial, which is expected to begin on the 21st local time.
3. Nancy Pelosi, the speaker of the US house of representatives, has signed the latest articles of impeachment against Donald Trump. Articles of impeachment are expected to be “escorted” to the Senate by seven house impeachment managers.
4. The U.S. producer price index, released on Wednesday, rose to an annual rate of 1.3 percent in December, up from 1.1 percent but below expectations.
Fundamental negative factors:
- The US economy is expected to grow by 2 percent this year, with data showing that the Labour market is doing quite well and the economy looks “quite well”, fed chairman Tom Harker said.
2. On Friday, January 17, U.S. housing starts rose to an annualized total of 1.608 million units in December, the highest since December 2006, and a 16.9 percent monthly rate, the biggest monthly increase since October 2016.
3.Us retail sales rose 0.3 percent in December on expectations of a 0.3 percent raise and a 0.2 percent gain, according to data released on Thursday, January 16, boosting sentiment. Meanwhile, the number of Americans filing new claims for jobless benefits fell to 204,000 last week from an expected 216,000.
4. On January 15, eastern time, Liu he, member of the political bureau of the communist party of China central committee, vice-premier of the state council and Chinese leader of the comprehensive economic dialogue between China and the United States, and US President Donald Trump officially signed the first stage of china-us economic and trade agreement.