On Wednesday (December 30), the DOLLAR index continued to come under pressure, trading at around 89.75. Spot gold maintained its upward momentum, with the price just above $1,885 an ounce. Novel Coronavirus mutation continues to attract attention. The latest news shows that the first case of irus mutation infected with a novel Coronavirus has occurred in Colorado, USA, which is also the first case in the United States. Gold also got a boost from concerns that the novel Coronavirus could spread in the U.S., raising risk aversion in the market. In addition to COVID-19, investors continued to focus on developments in the U.S. fiscal stimulus, with senate Majority Leader Mitch McConnell rejecting Minority Leader Charles Schumer’s unanimous request for a $2,000 check bill on Tuesday, and negative developments in the U.S. fiscal stimulus limiting the strength of gold’s rebound.
Novel Coronavirus infection was first reported in the United States
The COVID-19 virus, which emerged in the UK, has recently spread to other countries, including Denmark, Germany, Switzerland, France, Belgium, Australia, the Netherlands, Japan, Spain, Canada and South Korea. According to statistics, novel Coronavirus infected patients have been found in more than ten countries. On December 29 local time, Colorado health officials reported the first case of a novel coronavirus infection in the state, the first such case in the United States. Prime Minister Boris Johnson had warned that the mutant virus was 70 per cent more transmissible.
The first novel mutation coronavirus infection in the United States has been confirmed by a Colorado laboratory and the CDC has been notified, health officials said December 29. The infected man, a man in his 20s with no travel history, is in quarantine. Colorado Governor Jared Polis says no close contacts have been traced and health officials are working to track potential cases.
“We have the first case of a variant of the Novel CoronavirUSb.1.1.7, which was discovered in the UK,” Polis wrote on Twitter. The health and safety of the people of Colorado is our top priority, and we will be very closely monitoring the situation and other new confirmed cases. The patient, a male in his 20s, is being quarantined in Elbert County and has no history of travel. So far, no close contacts have been identified for the patient, but public health officials are working to identify other potential cases through thorough contact tracing interviews. “We are working to prevent the virus from spreading and novel Coronavirus at every level.”
CDC subsequently issued a statement stating that more novel Coronavirus infections may be found in the United States. “We expect that more (mutation Coronavirus) cases may be discovered in the coming days,” CDC said. Viruses are constantly changing through mutations, and over time, new variants are expected to emerge. Novel Coronavirus has been discovered in many parts of the United States and the world during this novel coronavirus outbreak.”
Phillip Streible, chief market strategist at Blue Line Futures, said last week: “If the new strain does enter the U.S. and reinfects people, it could really cause some additional economic damage, which could be the next positive for gold.”
On December 22 local time, CDC said that a mutation novel Coronavirus, first discovered in the UK, may have spread in the US. “Given the continuing travel between the UK and the US and the high prevalence of the novel coronavirus in the UK in the current novel coronavirus epidemic, it is highly likely that the mutation has already spread in the US,” CDC said in a statement.
Novel Coronavirus variants “are likely to have spread across the United States and may have a significant number by now,” said former FDA Commissioner Scott Gottlieb on December 27.
In the United States, there have been more than 1,996 confirmed cases of COVID-19 and more than 346,000 deaths. The death toll in the United States in December was the highest since the outbreak began. According to data released by the Atlantic’s National Epidemic Tracking Project, the number of COVID-19 patients hospitalized in the United States has reached 124,686, the highest since the outbreak began, with 22,838 patients being treated in intensive care units (icUs).
Us Republican Congressman Luke Letlow has died of COVID-19 at the age of 41, Politico reported on Wednesday.
According to Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, there are 100,000 to 200,000 new cases of COVID-19 in the United States every day, and the number of hospitalizations and deaths is on the rise. He believes the surge in COVID-19 cases is “out of control in many ways”.
Concern about the mutation of a novel Coronavirus has been on the rise since the pre-Christmas weekend, when British Prime Minister Johnson noted that a new novel Coronavirus appeared to be spreading more easily than previous viruses and was spreading rapidly in England. Dozens of countries have now banned flights from the UK as part of their efforts to contain the outbreak.
According to the latest risk assessment report released by the European Centre for Disease Prevention and Control (ECDC) on The 29th, as of the 28th, 14 countries including the UK have reported cases of infected novel coronavirus. Mike Catchple, chief scientist at the centre, warned there was a high risk of further spread of the mutated strain in Europe, which would lead to more hospitalisations and deaths and amplify the impact on healthcare systems.
In addition to the United Kingdom, a highly contagious mutation of a novel Coronavirus has been discovered in South Africa, causing a surge in the number of confirmed cases, hospitalizations and deaths in the country.
On December 22, local time, WORLD Health Organization (WHO) released relevant information on novel Coronavirus reported in the United Kingdom. On 14 December, the United Kingdom reported to WHO that a new novel Coronavirus variant had been discovered through viral gene sequencing. Preliminary analysis showed that the variant was more likely to spread from person to person, with an estimated 40 to 70 percent increase in infectivity and 0.4 in the transmission index between 1.5 and 1.7.
Who Director-General Tedros Adhanom Ghebrezek said the UK reported that the mutated virus was more transmissible, but there was no evidence that it was more likely to cause severe illness or death. Who is working with scientists to understand how mutations affect the behaviour of the virus.
The proposal for a $2,000 relief check has stalled
Senate Majority Leader Mitch McConnell on Thursday blocked Senate Minority Leader Charles Schumer’s efforts to find a unanimous vote on a bill that would increase direct payments for the coronavirus relief program to $2,000 by the end of the year.
On The evening of December 28 local time, the Democratic-led House of Representatives voted 275-134 to approve a bill that would increase the new Coronave-relief package for those earning less than $75,000 a year from $600 to $2,000. The bill goes to the Republican-controlled Senate, where a two-thirds majority is needed to pass it. Republican lawmakers had argued that increasing the payout would lead to an increase in the deficit.
US President Donald Trump threatened last week to cut other unnecessary spending if Congress did not raise the amount of bail-out cheques paid to individuals from $600 to $2,000. But a fight with members of Congress could lead to a government shutdown, prompting Mr. Trump to back down. On the evening of December 27 local time, Trump signed a $2.3 trillion COVID-19 bailout and federal government comprehensive spending bundle bill, which includes $900 billion of COVID-19 bailout funds and $1.4 trillion of government spending funds.
Senate Minority Leader Charles Schumer sought an anonymous vote on Tuesday to pass a $2,000 cash handout to fight the epidemic, but McConnell refused. McConnell noted that the Senate will address three of President Trump’s demands this week, including the amount of individual bailout subsidies, election fraud, and a bill exempting technology companies from liability for user content.
“The Senate will begin to focus on these three priorities this week,” McConnell said. He did not explain when or if a vote would be held.
In a statement Tuesday, Mr. Schumer said that if Mr. McConnell tried to insert unrelated partisan provisions into the bill that would do nothing to help struggling families across the country, the larger direct payments would not become law. “Any such move by Senator McConnell would be a blatant attempt to deprive the American people of a $2,000 survival check,” he said.
“Every Democratic senator supports the bill, but unfortunately the Republicans are not on our side,” Mr Schumer said on Monday.
Looking ahead, in the absence of major data/events, the Senate’s performance on the U.S. stimulus plan will be key to the short-term direction of the market, said Anil Panchal, an analyst at FXStreet.
While the latest US fiscal stimulus news weighed on gold prices, gold held firm as the dollar continued to weaken. The DOLLAR index is currently trading around 89.75.
“The pace of the dollar is very heavy and will continue into next year,” says Bart Wakabayashi, Tokyo branch manager at State Street Bank and Trust.
According to Stephen Innes, chief global market strategist at Axi, gold may need further dollar weakness for gold to climb back above the $1,900 an ounce mark.
“Gold has done well in technical terms,” said Saxo Bank analyst Ole Hansen. “The weakness of the dollar is backed by the possibility that U.S. consumers will get bigger checks.”
Leading financial website Economies.com said gold showed some bullish tendencies and tried to move away from the bullish channel support line, which supports the scenario of continued bullish trend for gold prices. It is now waiting for gold to test the next major target of $1,905.00 an ounce. Gold needs to stay above the key $1,870 an ounce level to continue the bullish trend, Economies.com said.