Gold short – term sharp rise! Gold just crossed $1,850! Countdown to Biden’s Inauguration! Washington is ready: 25,000 men!

Wednesday (January 20) in the Asian session, the dollar index fell under pressure, is now trading around 90.35; Spot gold short – term rapid rise, gold just broke through 1850 dollars/ounce pass. The inauguration of the new US president will take place in Washington on January 20 at noon local time, and investors are closely watching the spotlight event, which could be the next catalyst for gold prices. Analysts said gold could benefit from a rise in risk aversion in the event of violence during the inauguration.

Bullion held on to gains on Tuesday as the dollar remained under pressure and the prospect of more stimulus boosted gold’s appeal as an inflation hedge. Spot gold closed Tuesday at $1,840.13 an ounce, up $3.04, or 0.17 percent. Asian market intraday on Wednesday, gold prices quickly moved higher, as high as $1,850.34 / ounce.

On January 19, local time, the US Senate Banking Committee held a hearing on the nomination of Janet Yellen as US Treasury secretary. In her testimony, Yellen urged lawmakers to “take big action” on the next coronavirus mitigation package, adding that the benefits outweigh the costs of a higher debt burden.

“Neither the president-elect nor I have contemplated the debt burden of the United States in proposing this plan,” Ms Yellen said. But with interest rates at historic lows, the smartest thing to do is to act aggressively.” Ms. Yellen also said the value of the dollar should be determined by market forces. She added that the United States should oppose attempts by other countries to artificially manipulate their exchange rates to gain a trade advantage.

Ms. Yellen told lawmakers on Tuesday that help for the unemployed and small businesses would be “most effective,” as she made the case for Mr. Biden’s $1.9 trillion coronavirus rescue plan. In response to a question from the committee, Yellen said the economy will be most helped by “the relief that we provide to those most in need and to small businesses.”

Yellen served as chair of the Federal Reserve from February 3, 2014 to February 5, 2018. She is the first woman to lead the Fed. If confirmed by the Senate, Yellen would make history again as the first woman to hold the post.

“The main factor seems to be the dollar,” said Michael McCarthy, chief market strategist at CMC Markets in New York. McCarthy added that the dollar, despite its recent rebound, had further to fall, which would support gold prices.

Simon Harvey, senior currency analyst at Monex Europe, said: The market is expecting a return to the idea of a quick fiscal stimulus in the United States. “It was always assumed that a massive fiscal stimulus package would get broad bipartisan support in the Senate, not a lengthy reconciliation process.”

In the $1.9 trillion stimulus package that Biden announced last week, Americans will receive $1,400 in cash support, for a total of $2,000 per person, plus a $600 package passed by Congress in December 2020. Unemployment benefit insurance will be raised to $400 a week from $300 and extended until September.

Daniel Ghali, a commodities strategist at TD Securities, said the dollar “will be driven by market forces, which are pointing to a weaker dollar.”

Jeffrey Sica, founder of Circle Squared Alternative Investments, said the possibility of more stimulus was very positive for gold. “The dollar is going to fall a lot, and that will give gold a big boost in the near future,” Sica said.

“Central bankers around the world are aware that while equity markets are doing well, the underlying economic conditions are still very weak and stimulus is needed,” said Michael Langford, director of AirGuide, a business advisory firm.

Gold is considered a hedge against inflation and currency devaluation.

Joe Foster, portfolio manager of VanEck International Investors Gold Fund, says inflation could surpass the Fed’s 2% target as early as April, and that a high-inflation environment will be the main catalyst for Gold to break its all-time high above $3,000 an ounce.

Jeff Wright, executive vice president at GoldMining, said gold’s rally on Tuesday was clearly linked to the weaker dollar, which was encouraged by Yellen’s support for the bailout. Ms Yellen’s so-called “big move” implies that gold will benefit from this trend, regardless of the US deficit and its ability to balance its budget.

OANDA analyst Edward Moya said Yellen’s comments could be a springboard for bullish gold as the Fed and Treasury will be better coordinated and gold investors are bracing for another wave of super-easing.

According to Economies.com, gold is on track to return to bullish territory after overcoming a key resistance of $1,848.60 an ounce, hitting its first bullish target of $1,872.00.

Countdown to Biden’s inauguration

Investors are also awaiting the inauguration of U.S. President-elect Joe Biden. The inauguration ceremony will take place at noon local time on January 20. In the wake of the January 6 attack on the U.S. Capitol, the security level in Washington, D.C., has been raised again, with areas around the inauguration put on full alert.

Some 25,000 heavily armed National Guard troops have been deployed to Washington, more than the U.S. has deployed in Afghanistan, Iraq and Syria combined.

Biden left his home state of Delaware and arrived in Washington January 19 to prepare for the inauguration. Biden said goodbye to a crowd in Delaware before heading to Washington, saying he was only sorry that his son, who died in 2015, could not be with him.

Biden arrived by plane at Joint Military Base Andrews in Washington and returned to the nation’s capital to begin preparations ahead of his inauguration as the nation’s 46th president. He waved goodbye to the residents of his home state of Delaware and waved to media cameras as he and his wife stepped off the plane in Washington and rode into the city in a black limousine. Arriving at the Lincoln Memorial for a lighting ceremony, Biden called on Americans to remember the lives lost during the New Crown outbreak and to encourage them to begin healing. “It is sometimes difficult to accept and remember the truth, but it is the best way for us to heal,” he said.

Biden said the United States has no time to waste and must act now to address its economic problems. “During the Covid-19 pandemic, millions of Americans have unreservedly lost the dignity and respect that come with a job and a paycheck,” he said. “We see people facing displacement, long lines at food banks, and the real pain of the pandemic overwhelms the real economy.”

“We must act, we cannot do nothing,” Mr Biden said. “The crisis that the American people are suffering deeply is clear. If we seize the moment, the debt situation will be more stable. The new bipartisan bailout plan in December was a good first step, but vaccine rollout in the United States has been a dismal failure so far. We need more action, more bipartisanship, and fast. We will have a plan for 100 million doses in 100 days, we will have a plan for reopening schools in the first 100 days, and we will make sure that employees who are sick can get paid at home.”

After days of heightened security in Washington after Trump supporters stormed the Capitol on Jan. 6, a state of emergency was imposed on Jan. 11 to prevent violent demonstrations around Biden’s inauguration.

The inaugural ceremony will be much smaller this year because of congressional riots and the Covid-19 epidemic. According to US media, this will be an inauguration like never before in US history. For previous US inaugurations, 200,000 tickets have been given out, but this year that number has been reduced to about 1,000, with only members of Congress, former presidents and dignitaries attending.

Reuters reports that the National Mall, which sits between the Capitol and the White House and is surrounded by museums, is now closed to the public. Mayor Muriel Bowser of Washington said Sunday that law enforcement officials had no choice but to increase security after the deadly attack on the Capitol.

The Federal Bureau of Investigation had warned of armed demonstrations outside all 50 state capitols between Tuesday 16 and Biden’s inauguration on Thursday.

The US Secret Service announced on January 15 that it would establish a militarised “red zone” and “green zone” in Washington, DC, until January 21, ahead of Biden’s inauguration on January 20. According to RT, the Russian news agency, the red and green zones include areas near the White House, the Lincoln Memorial, the National Mall and the Capitol.

Twelve National Guardsmen have been removed from Washington, D.C., and sent home after officials confirmed they were “flagged” in the FBI vetting process. US military officials said on Monday they were concerned about an “insider attack” by security personnel at the presidential inauguration, prompting investigators to conduct security clearances for those involved.

Defense Department spokesman Jonathan Hoffman confirmed that 12 militiamen had been removed from their posts and sent home. But he said only two of them had made inappropriate remarks or words related to the inauguration, while the other 10 were dealing with other potential issues, such as previous criminal activity.

“The review of the deployment of soldiers to the inauguration is to identify potential links to any suspicious behavior in the past, not just extremism,” Hoffman said. As a matter of caution, we will take immediate action to remove those involved, whether through law enforcement or the militia chain of command, and we will address those issues.”

Responding to the security concerns, Acting U.S. Attorney General Jeffrey Rosen called for peace and order on Inauguration Day. He encouraged an orderly transfer of power, but said anyone attempting violence would be arrested and prosecuted. Rosen said previous acts of violence at the U.S. Capitol are intolerable. He promised that the FBI and National Guard would step up security and that there would be no room for crime at the inauguration.

“The American people have shown that they will not allow violence to go unanswered,” Rosen stressed. Violent and senseless crime is not the right way to resolve differences or promote change in our country. All Americans should seek a peaceful inauguration because the Constitution and traditions of the United States depend on it.”

Acting Defense Secretary Christopher Miller confirmed January 18 that background checks for the 25,000 National Guard members who will assist with security for the inauguration are “normal procedure” and that there is no intelligence to indicate a security threat within the National Guard.

On January 15, the Chinese Embassy in the United States published an important notice on its website. ‘Given the public order and epidemic situation in the United States, Chinese citizens and institutions in the United States are reminded to enhance safety awareness and avoid parades, rallies and other places where people gather,’ the notice said.

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