On Tuesday (December 15) in the Asian session, the DOLLAR index was under pressure to decline, trading around 90.60; Spot gold continued to pull up short – term, gold just broke through $1,835 an ounce level. While positive news on COVID-19 vaccine curtailed safe-haven buying, expectations of more U.S. stimulus continued to boost gold prices. In U.S. presidential news, Electoral College results have confirmed Democrat Joe Biden as the next president of the United States, but president Donald Trump is likely to continue to question the results.
Gold prices fell on Monday as the launch of the COVID-19 vaccine in the US sparked optimism in broader financial markets and investor hopes for an economic recovery. Spot gold closed at $1,827.20 an ounce, down 12.50 dollars, or 0.68 percent.
Health care workers and people living in long-term care facilities, such as nursing homes, are among the first to be vaccinated against the coronavirus in the US, local time on December 14. The US Food and Drug Administration (FDA) on December 11 approved an application for emergency use authorization for a COVID-19 vaccine developed by Pfizer of the United States and Biotechnologies of Germany. It is the first COVID-19 vaccine approved for emergency use in the United States and is approved for use by people 16 years of age and older.
The epidemic in the United States continues to grow rapidly. In the United States, there have been 16.94 million confirmed cases of COVID-19 and more than 308,000 deaths. Over the past week, the United States has seen more than 200,000 new confirmed cases in a single day, with record numbers of people hospitalized with COVID-19. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said recently that the COVID-19 epidemic in the United States has not yet peaked.
According to the latest data released by the Atlantic’s National Epidemic Tracking Project, the number of COVID-19 patients hospitalized in the United States has reached 109,298, the highest ever recorded since the outbreak.
Zaner Metals analysts noted that the strong performance of equities and most physical commodities showed a risk bias, prompting a fall in gold, the haven asset.
However, a weaker dollar, coupled with expectations of a $908 billion U.S. COVID-19 rescue package, helped fuel a rally in gold prices that continued in the short term in Asian trading on Tuesday, with gold just breaking through the $1,835 / oz barrier and hitting as high as $1,835.33 / oz.
A bipartisan group of U.S. lawmakers on Monday released details of their proposed $908 billion stimulus bill to combat the epidemic. The first of two parts of the bill is a $748 billion rescue package that includes nearly $300 billion for small businesses, vaccine distribution assistance and an additional $300 a week in unemployment benefits. The second part of the bill contains only two elements, the $160 billion in state aid sought by Democrats and the accountability provisions that Republicans say should be included in the package.
In addition, according to Politico, the U.S. congress representative close to finalizing a scale overall spending bill for $1.4 trillion in fiscal 2021, in order to avoid the government itself in a situation of “closed” at midnight on Friday, it will be for a major priority on the legislative agenda the end, and an increase in the outbreak aid bill into the package by the end of the urgency of the legislation plan.
The Wall Street Journal reported that U.S. Senate and House of Representatives are close to reaching a deal to break up $160 billion in state and local aid into separate packages, with a view to reaching a deal by the end of the year. Progress on U.S. government spending plans has helped boost demand for gold.
Gold is seen as a hedge against inflation, which could be triggered by unprecedented stimulus measures in 2020. Gold prices have risen more than 20 per cent this year.
Adrian Day, president and CHIEF executive of Adrian Day Asset Management, said he was neutral on gold prices in the near term, but remained bullish.
“Gold is likely to trade within a tight range this week, but I expect an upside bias,” Day said. It survived a major test below its 200-day moving average. I’m still bullish in the future.”
Some analysts continue to see potential in gold, especially as the dollar continues to face strong selling pressure.
Charlie Nedoss, senior market strategist at LaSalle Futures Group in New York, said he expects the dollar to weaken further this week, which should support gold prices. “I think we are on track to see stimulus measures next year, which will put pressure on the dollar,” Nedoss said.
Adam Button, senior market strategist at Forexlive.com in New York, said he is bullish on gold as the dollar weakens because the end of December is the start of a strong gold season.
Jim Wyckoff, senior analyst at Kitco Metals, said: “We are seeing a pick-up in risk appetite in the market, evidenced by the global equity rally, which is putting some pressure on safe-haven gold. The sharp decline in the DOLLAR index may have limited some selling pressure.”
A monetary policy statement from the Federal Reserve on Wednesday is expected to be a catalyst for the gold market.
A less dovish Fed and a lack of real progress on stimulus measures will not only hurt stocks, but will also dampen demand for gold, Sevens Report Research said.
Howie Lee, economist at OCBC Bank, said: “The optimism surrounding the COVID-19 vaccine is likely to outweigh the impact of further fed easing and the near-term fiscal rescue programme. But gold is likely to rebound in 2021, when optimism about vaccines fades and investors’ attention shifts back to expectations of higher inflation as the US economy still needs substantial monetary and fiscal stimulus.”
Mr Trump will continue to question the outcome after the Electoral College voted to confirm Mr Biden as the winner
Donald Trump has challenged all the states that voted for Joe Biden to become the next president of the United States after the Electoral College voted to formally confirm the democrat as president on Monday. In the final tally, Mr. Biden received 306 votes to Mr. Trump’s 232.
Monday’s electoral College vote in the six most contested states — Pennsylvania, Georgia, Michigan, Wisconsin, Nevada and Arizona — all voted in favor of Joe Biden as the next president.
The United States has an indirect electoral system called the Electoral College for the presidency. The electoral College is made up of 538 electors representing 50 states and the capital, Washington, D.C. The vote is held on the First Monday after the second Wednesday of December in an election year, and this year it is December 14. With the exception of Maine and Nebraska, 48 other states and the capital, Washington, D.C., have a “winner-take-all” system, in which the person who gets the most votes gets all the electoral votes for that state or the capital. Normally, the electoral College vote is a matter of routine, but there have been instances in history when individual electors have failed to vote the way the voters wished.
In the last election four years ago, 10 “faithless electors” did not vote for the presidential candidate according to the results of the electorate. But there were no faithless electors in this year’s electoral College vote.
After being confirmed as the winner by the US Electoral College, Mr Biden said he advised Mr Trump to recognise the result. Biden tweeted: “I am forever humbled to have 5.7 million people who helped make our campaign a success. To thank you, we are hosting a grassroots donors thank you tonight. Click here to join us.”
“In this battle for the soul of America, democracy has prevailed,” biden said. We the people voted. [The American people] have faith in our system. The integrity of our elections remains intact. So now is the time to turn the page. Unite. Heal.” Biden repeated his campaign pledge to be president for all Americans, whether they voted for him or not. He said the country still has a long way to go in combating novel Coronavirus and the economy.
The electoral College vote is not the last step in the U.S. presidential constitutional process. According to legal procedure and schedule, once the results of the electoral college are officially released, they will be sent to the U.S. Congress, which will hold a joint session on Jan. 6 to count the electoral votes. Vice President Mike Pence is expected to preside over the January 6 vote in his official capacity as President of the Senate, and his job will include announcing the results.
In his first post on Twitter since Biden won more than 270 electoral votes, President Trump confirmed that U.S. Attorney General William Barr would leave office before Christmas, effective Dec. 23.
In a series of tweets, Mr Trump wrote: “Mr Barr will be stepping down by Christmas, outstanding Deputy Attorney General Jeffrey Rosen will be acting Secretary, and Richard Donoghue, the highly respected US attorney for the Eastern District of New York, will take over as Deputy Secretary. Thank you! I just had a very nice meeting with Attorney General Barr at the White House. We have always had a good relationship. According to the letter, Bill is leaving before Christmas to spend a wonderful holiday with his family.”
The White House is not throwing in the towel for now, as Mr Trump continues to press charges of electoral fraud. Mr. Trump spent the day in the Oval Office, the White House and his campaign aides said on Monday, monitoring the electoral College vote while making phone calls to Allies and fellow Republicans.
Since election Day, Mr. Trump, his campaign and his political Allies have filed dozens of lawsuits, asking federal and state courts to invalidate the election results on grounds of irregularities.
At a news conference after Thanksgiving on November 26, Trump said he would leave the White House if biden won the Electoral College.
But US President Donald Trump has vowed that despite the Electoral College vote on December 14, he and his campaign “will press ahead” with a legal challenge to the November election results, Fox News reported on December 13.
Trump said on fox News’ Fox and Friends on The morning of December 13 that his legal team will continue to challenge the election results despite the Supreme Court’s dismissal of a lawsuit brought by Texas against several swing states.
“No, it’s not over,” Trump said. We will move forward. We have a lot of district cases, we have won in Pennsylvania, Michigan, Georgia, and we have ongoing cases in Wisconsin.” “We’ve caught them with a lot of illegal facts, but no one believes them,” Trump said. “There were even dead votes in the process. There were thousands of votes cast illegally.”
Mr Trump said it was a “rigged election”. Mr Trump said he feared the US had an “illegitimate president” because of election fraud. These election frauds make the United States look like a “third world country.” Asked if he would attend Biden’s inauguration, Trump did not respond. “I don’t want to talk about it,” he said.
White House senior adviser Stephen Miller tried to downplay the importance of the Electoral College vote in an interview on December 14 local time and suggested that legal challenges from the Trump camp would continue until Inauguration Day on January 20.
The Russian satellite news agency Sputnik reports that The Republican president Donald Trump will not concede the election and continues to challenge the results in court in some states. The US Supreme Court has rejected a Texas lawsuit seeking a review of the election results. In principle, however, Mr Trump can still count on Congress or the Supreme Court to review the electoral vote.
Any congressional objection to the electoral vote must be submitted in writing and signed by at least one member of the House of Representatives and one senator. If there is a dissent, the two chambers will consider the dissent separately.