Gold short string suddenly pulls up! Gold is just back above 1830! Us dollar index breaks 91! Two new pieces of news from China and the US.

On Thursday (December 3) in the Asian session, the DOLLAR index short-term continued under pressure, the latest index below 91; Spot gold, which has been trading around $1,832 an ounce, pulled back above the $1,830 mark in a sudden short-term rally. Signs of progress in discussions on the U.S. Novel Coronavirus bailout boosted gold’s appeal as a hedge against inflation. The US House of Representatives voted on December 2 to pass the Foreign Companies Accountability Act, and the Trump administration banned cotton imports from the Xinjiang Production and Construction Corps, according to the latest news.

Gold prices were supported as the proposed $908 billion novel Coronavirus pandemic related stimulus plan and the CORonavirus pandemic talks between U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi boosted risk appetite and pushed the dollar to multi-year lows.

The DOLLAR index.DXY fell below 91 in Asian trading Thursday, extending its lowest level since April 2018. The dollar index currently hit a low of 90.97.

Vassili Serebriakov, currency strategist at UBS in New York, said the momentum of the dollar’s weakness should continue and any rebound in the greenback is likely to find sellers.

U.S. Treasury Secretary Steven Mnuchin said Wednesday that President Trump supports a pandemic rescue deal proposed by Senate Majority Leader Mitch McConnell. “The president will sign the bill that McConnell put forward yesterday,” Mnuchin told reporters on Capitol Hill. We look forward to making progress on this.” Mr. McConnell has been pushing a $500 billion package for months, but Democrats say it is not enough.

“We’re one step closer to the next stimulus package,” said David Meger, head of metals trading at High Ridge Futures. This has weakened the dollar, eroded it and supported all commodity prices, including gold and silver.”

Precious metals prices are supported by expectations of further U.S. fiscal stimulus, ICIC Bank said in an analysis released on Wednesday.

Gold outlook bullish Beware COVID-19 vaccine optimism

Td strategists said on Wednesday: “The sell-off may be over, leaving fewer long-only traders in the market, but the remaining gold investors are holding above-average positions, suggesting they are more confident traders.”

Td securities said: “With real interest rates yet to rise further, the US dollar continuing to hit new lows and the Fed making loose noises, we expect a sustained economic recovery to once again boost the appetite for gold as an inflation hedge. This could create a bullish environment for gold as we enter the December Federal Open Market Committee meeting.”

Td securities expects gold to continue to rise through the end of the year, with inflation expectations expected to top $2,000 by 2021.

Edward Moya, senior market analyst at OANDA, said the Fed will remain fairly accommodative. The Fed’s easing policy is good for gold.

ThinkMarkets market analyst Fawad Razaqzada said the dollar index remained near its recent lows as the euro rose, helping to support higher gold prices.

“According to our model, gold should be around $1,850 rather than below $1,800,” said Giovanni Staunovo, commodities analyst at UBS.

Gold has returned to positive territory after re-testing the $1818.00 / oz level in the previous few sessions, making the bullish scenario valid for some time to come, according to an article on From the 4-hour chart, gold is trading above the EMA 50 index, which supports bullish expectations. As long as gold stays above $1,818.00 an ounce, the outlook remains bullish, with the next target at $1,838.10 an ounce.

However, analysts said the positive news on COVID-19 vaccine could be an important factor impeding a rebound in gold prices. Gold recorded its worst monthly performance in four years in November, dragged down by optimism about a vaccine-driven economic rebound.

On Wednesday, the UK became the first country to approve Pfizer’s vaccine for COVID-19. A spokesman for the Department of Health and Social Care said the government had accepted the recommendation of the Medicines and Medical Products Regulatory Authority to approve the use of the COVID-19 vaccine from Pfizer and Germany’s BioNTech, according to the British government website on Wednesday. The vaccine will be available across the UK from next week.

There are two new pieces of news from the sino-us situation

On The China-U.S. Front, The U.S. House of Representatives on Wednesday passed The Holding Foreign Companies Accountability Act, which could prevent some Chinese Companies from listing on U.S. exchanges. The bill would impose restrictions on Chinese companies listed on U.S. exchanges, including requiring them to provide proof that they are not controlled by a foreign government. After the House passes it, it will go to President Trump for his signature.

The act bars foreign companies from listing in the US if they fail to meet public Company Accounting Oversight Board (PCAOB) auditing standards for three consecutive years. It also requires listed companies to disclose whether they are controlled or owned by a foreign government.

The bill was passed unanimously by voice vote in the House of Representatives, and since it had already passed the Senate, the next step would be to send it to the White House. The White House had said it expected President Donald Trump to sign the bill into law.

The bill’s sponsors say the aim is to ensure that foreign companies listed in the United States meet the same independent audit requirements as Their American counterparts. The move could pull Chinese companies, including Alibaba Group Holding Ltd. and Baidu Inc., out of the U.S. market.

The legislation, which has broad support from Republicans and Democrats, was expected to be passed by the House of Representatives this week, and on May 20, the Senate unanimously passed the Foreign Corporation Accountability Act, which would impose additional disclosure requirements on foreign companies listing in the U.S.

Analysts say the FOREIGN Corporate Accountability Act could prevent some Chinese companies from listing on U.S. exchanges unless they comply with U.S. auditing standards.

On Dec. 2, Hua Chun Ying responded at a regular press conference of China’s Foreign Ministry by saying that the United States had adopted discriminatory policies against Chinese companies and was carrying out a political crackdown on Chinese companies.

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