Tuesday (January 12) in the Asian session, the dollar index was basically stable, now trading around 90.55; Spot gold short – term fast pull up, gold just broke through 1850 dollars/ounce mark, the highest once touched 1851.79 dollars/ounce. The Federal Bureau of Investigation has warned of large-scale armed protests this week in all 50 US states and the capital Washington, DC. In response, US President Donald Trump declared a state of emergency in Washington, DC, late on January 11 local time, lasting until January 24, and ordered the federal government to provide assistance to support the city’s response. Fears of renewed conflict in the United States sparked a safe-haven bid that fueled the rally.
Spot gold fell back on Monday after hitting a six-week low in the session, pressured by a stronger dollar and higher U.S. Treasury yields. Spot gold settled down $5.12, or 0.28 percent, at $1,843.74 an ounce, after hitting as low as $1,816.76.
The Democratic-controlled Senate raised the market’s bets on a big stimulus package, sending the yield on the benchmark 10-year Treasury note to its highest level since March. Higher bond yields increase the opportunity cost of holding non-interest-bearing gold.
David Meger, director of metals trading at High Ridge Futures, said: “We’ve seen the dollar recover a little bit, yields recover a little bit, so we’ve seen a pullback in some commodity markets, including metals.” A “quiet period” leading up to the inauguration of the Biden administration and the Democrats’ “agenda” on interest rates, liquidity and stimulus policies also weighed on metals, Meger added.
Expectations of more U.S. economic stimulus helped limit gold’s losses, however. President-elect Joe Biden said on Friday he would propose a comprehensive stimulus package that would be ‘big,’ with a stimulus package in the trillions of dollars. Biden said details of the stimulus plan would be released on Thursday.
Growing restrictions on social mobility around the world as the novel coronavirus continues its rampage could also help boost gold’s value, experts say.
Worldwide real-time statistics show that the cumulative number of confirmed cases of CoviD-19 worldwide has exceeded 91.31 million. The cumulative number of confirmed cases of COVID-19 in the United States has exceeded 23.14 million, and the cumulative number of deaths has exceeded 385,000.
US media say January is likely to be the deadliest month of the US outbreak, with more deaths from the new crown than any previous month at the current rate. The number of new deaths in the US reached 77,431 in December, the highest in a month.
The latest TD Securities analysis says: “Given that vaccine programmes in the US and much of the world are well behind schedule and the pandemic is still spreading, economic conditions will remain weak for some time. This suggests yields may not be as high as some gold traders have been betting on, which is good news for gold prices.”
In addition, U.S. political uncertainty also gave gold some safe-haven support.
House Democrats on Monday formally filed a resolution to impeach President Donald Trump, accusing him of “sedition” over his role in last week’s deadly attack on the U.S. Capitol.
The House of Representatives is set to vote later Tuesday on Jamie Raskin’s proposal to impeach President Trump through the 25th Amendment to the Constitution.
Separately, House Majority Leader Steny Hoyer has announced that the House will meet on Wednesday to vote on a bill to impeach President Trump, according to sources.
According to Economies.com, gold broke through $1,838.10 an ounce on Monday and is trying to stay above that level. With gold closing above $1,838.10 yesterday, this stops the bearish scenario and will drive a rally with first targets at $1,82.00 and higher targets at $1,918.00.
Investors still need to be wary of afternoon trading, Economies.com said. Once gold breaks below $1,838.10 again and stays below that level, this opens the way for a continuation of the bearish trend in the near term, with the next major target in the $1,765.00 area.
Economies.com expects $1,800.00 and $1,860.00 to provide short-term support and resistance to gold, respectively.
The FBI has warned that armed protests will break out across the United States this week after President Trump approved a state of emergency in Washington, DC
The Federal Bureau of Investigation has sent memos to law enforcement agencies across the country warning of possible armed protests at capitols in all 50 states starting Jan. 16.
A senior law enforcement official says armed groups are threatening to travel to Washington, D.C., on the same day and start an uprising if Congress removes President Trump. The memo includes information from agencies including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the Department of Defense, the Park Police and the U.S. Marshals, the official said.
ABC News reported on January 11 that, according to an internal FBI bulletin it obtained, “armed protests” and “mass insurrection” could erupt in all 50 US states and Washington, DC, starting this week and lasting at least through Inauguration Day if Mr Trump is removed from office before the end of his term. According to the memo, the armed group discussing a trip to Washington on January 16 said it would trigger a mass uprising if Congress tried to remove Trump through the 25th Amendment.
The FBI has received information in recent days about calls to “storm” state, local and federal courthouses and administrative buildings if President Trump is removed from office before Biden’s inauguration day. The group also plans to “storm” government offices in every state that certified electoral votes for President-elect Joe Biden or Trump on the day he is sworn in.
The notice reads: “On January 16, the FBI received information from an identified armed group planning to travel to Washington, DC. They warned that if Congress tried to remove the president through the 25th Amendment, there would be a mass uprising.”
“These armed protests are planned at capitols in all 50 states from January 16 through at least January 20, and will take place at the U.S. Capitol on January 17 and 20,” the FBI’s internal bulletin continued.
Federal law enforcement officials are advising police agencies to increase security at state capitols across the country following the unrest at the U.S. Capitol, law enforcement sources told ABC News.
The FBI believes that armed protests across the country will not only involve supporters of President Trump, but also members of extremist groups, such as the anti-government “Boogaloo” movement, which is expected to take part in protests in several state capitals.
The Associated Press also reported that some posts on social media were calling for a “Million Militia March” on the day of Biden’s inauguration.
A group of Trump supporters protesting “election fraud” in Washington stormed the US Capitol on Saturday afternoon, forcing a halt to the process of a joint session of Congress certifying the final results of the election. Protesters confronted and clashed with military and police forces.
At least five people died during the siege of the Capitol, including Capitol Police Officer Brian Sicknick. The FBI announcement said Sicknik “died as a result of injuries sustained during a breach of the U.S. Capitol building.”
After the violent attack on the US Capitol on January 6, the FBI warned that armed protests across the US could cause more casualties, according to US media analysis.
US President Donald Trump has approved a state of emergency in Washington, DC, effective immediately and lasting until a new administration takes office, the White House said in a statement on Thursday night. Trump authorized the Department of Homeland Security and the Federal Emergency Management Agency to coordinate with local authorities as needed to respond to all emergencies, the statement said.
The declaration of a state of emergency in Washington, D.C., will allow resources from the Department of Homeland Security, the Federal Disaster Management Agency and other agencies to help ensure the 59th inauguration of the new president of the United States.
The U.S. Defense Department says it has approved the deployment of 15,000 National Militia troops to help secure President-elect Joe Biden’s inauguration on Tuesday.
Daniel Hokanson, director of the National Militia Bureau at the U.S. Department of Defense, said 6,200 National Militia troops are already deployed in Washington, with a total of 10,000 more planned by the end of the week. Another 5,000 are expected before the inauguration.
Acting Homeland Security Secretary Chad Wolf said he had moved up the date of the Biden inauguration as a ‘special national security event,’ from Friday 19 to Friday 13, because of the evolving security landscape seen in the events of the past week.