On Friday (December 11) in the Asian session, the DOLLAR index was under pressure to decline, now at around 90.65; Spot gold continued its short-term slide, breaking below $1,835 an ounce in early Asian trading on Friday after breaching $1,840 an ounce. Analysts said positive news on COVID-19 vaccines and a lack of substantive progress in US fiscal stimulus talks had weighed on gold prices. The younger brother of Us Democratic presidential candidate Joe Biden is being investigated by the FBI, according to us media reports.
Gold prices closed lower on Thursday as overall optimism over the COVID-19 vaccine continued to undermine safe-haven buying. Technical selling was also triggered by gold’s failure to break through resistance at $1,850. Spot gold closed at $1, 836.30 an ounce, down $3.10 0.17 percent.
As positive results from phase III clinical trials of several COVID-19 vaccines around the world continue to be reported, the approval and mass vaccination of vaccines are gradually underway. A day after The UK became the first Western country to begin mass vaccinations, Canada on Wednesday approved vaccines made by Pfizer and BioNTech.
The US is waiting for the FOOD and Drug Administration (FDA) to review COVID-19 vaccines developed by Pfizer and BioNTech. The FDA is expected to approve the vaccine for emergency use. Positive vaccine developments have increased the chances of economic normalisation and reduced the safe-haven appeal of gold.
According to the Wall Street Journal and other us media on December 10, FDA’s vaccine advisory panel recommended that Pfizer and BioNTech be approved to develop COVID-19 vaccines for emergency use.
Jeffrey Sica, founder of Circle Alternative Investments, said: “The expectation is that as people start distributing vaccines in some parts of the world, some of the confusion caused by the outbreak will ease.”
On December 8th the White House unveiled a $916 billion stimulus package. The plan has the support of Senate Republican Leader Mitch McConnell but is opposed by House Speaker Nancy Pelosi and Senate Democratic leader Charles Schumer.
Senate Majority Leader Mitch McConnell said On Wednesday that Republicans and Democrats “are still looking for a way forward on a new fiscal stimulus package.”
U.S. House Of Representatives Speaker Nancy Pelosi said Thursday that bipartisan negotiations on a new government aid package are moving toward “significant progress.” But Ms Pelosi added that the two sides were still discussing corporate liability exemptions.
U.S. data on Thursday showed initial claims for state unemployment benefits rose to 853,000 in the week to December 5, the highest level since the week of September 19. In further evidence that the epidemic and lack of additional fiscal stimulus are hurting the U.S. economy, new jobless claims rose more than expected last week as more companies were constrained by a rise in novel Coronavirus infections, the agency said in a commentary.
Edward Moya, an analyst at Oanda, said gold prices were in a volatile state due to the imminent approval of COVID-19 vaccines in the United States and intense talks surrounding stimulus talks.
Gold briefly broke through $1,838.00 an ounce on Thursday and was close to its first bullish target of $1,850.00 an ounce, according to an article on Economies.com. Gold subsequently retreated and tested a key support of $1,833.00 an ounce. Gold will remain neutral until it is confirmed that it has lost the above support, or breaks through $1838.00 and $1850.00 resistance to define its next target.
“Technically, gold has not broken above $1,850, which makes buyers less aggressive,” said Tai Wong, head of basic and precious metals derivatives trading at BMO. Going forward, gold is looking for a comfortable range and the overall gains are expected to slow.”
Insignia Consultants analyst Chintan Karnani said the COVID-19 news was negative for gold. The gold market will now focus on next week’s FOMC meeting and news of a new round of U.S. government bailouts.
“A lot of investors are more cautious ahead of the holidays and you will see more volatility because we won’t have steady volume,” said Edward Moya, senior market analyst at OANDA.
Xiao Fu, an analyst at Bank of China International, said: “There may be a slight correction in gold as there is not much safe-haven demand recently. However, with the Novel Coronavirus epidemic still quite serious in the US and Europe, the market may still be volatile.”
ING said the fundamental outlook for gold next year remained strong, although the vaccine news had prompted some short-term selling before the end of the year. In its latest forecasts, the bank expects gold to average around $1965 next year. It expects gold to break $2,000 by the third quarter of next year.
Us media: Joe Biden’s brother James is being investigated by the FBI
James Biden, the younger brother of Democratic presidential candidate Joe Biden, is under investigation by the FEDERAL Bureau of Investigation, Fox News reported On Tuesday.
Federal authorities in western Pennsylvania are investigating the now-defunct Americore Health company and have been asking James Biden about his role at the company, two sources familiar with the investigation told Politico.
On December 9 local time, Biden’s son, Hunter Biden, admitted that he was under investigation for tax fraud, which an administration source told Fox News was based in part on suspicious overseas transactions.
“I first learned yesterday that the United States Attorney’s Office in Delaware has interviewed my legal counsel, and yesterday they are investigating my tax affairs,” Biden said in a statement. I take the investigation very seriously, but I am confident that a professional and objective review will prove that I have acted lawfully and properly, including in my dealings with professional tax advisers.”
An administration source told Fox News that Hunter Biden is the subject/target of the grand jury investigation. According to sources, “target” refers to “someone who is likely to have committed a crime,” while “target” refers to “not sure” whether the person committed a crime.