US Congress Reconvenes After Violent Shocks The election results will be certified soon! Buying opportunities after the gold crash?

The dollar index was little changed in the Asian session, trading around 89.45. Spot gold also held steady, trading around $1,918.50 an ounce. The dollar’s sharp rally from its lows on Wednesday sent gold down more than $30 on the day. However, the unrest in Washington and the resulting political uncertainty in the US supported gold prices. The joint session of Congress, which had been interrupted by violent demonstrations to certify the election results, has resumed as investors await the announcement of the final results.

On Wednesday, the dollar index fell to 89.21, its lowest level since March 2018, before rallying to hit as high as 89.80. Spot gold has fallen sharply because of a rebound in the dollar, and higher U.S. bond yields are also negative for gold prices. Spot gold ended Wednesday at $1918.46 an ounce, down $31.40, or 1.61 percent, from an intraday low of $1901.41.

The yield on the 10-year US Treasury rose above 1 per cent for the first time since March last year, increasing the opportunity cost of holding non-interest-bearing gold. The yield on the 10-year US Treasury hit 1.06 per cent at one point on Wednesday, its highest level since last March.

Michael Armbruster, managing partner at Altavest in New York, said rising long-term Treasury yields are a headwind for gold, and if the 10-year Treasury yield continues to rise, gold is likely to fall further.

“Given the way gold has gone over the last few days and the overextension of the dollar’s decline, we are likely to see only some profit taking and some technical pullback,” said Craig Erlam, analyst at OANDA. Gold has been trading at resistance levels around $1950-1960 in the last few days and we could see a pullback.”

Gold fell sharply on Wednesday, falling below $1,928.00 an ounce and briefly testing the bullish channel support line, according to Economies.com. Investors need to be cautious in the afternoon trade, as if gold continues to slide and falls below $1900.00 an ounce, this could lead to further declines, with a near-term dip towards the $1838.00 area.

Economies.com said gold needs to break above $1,928.00 an ounce to reactivate the bullish trend, in which case the next target is $1,90.00.

Tai Wong, head of basic and precious metals derivatives trading at BMO, said: “Higher bond yields boosted the dollar and triggered an acceleration in gold selling, which accelerated as gold fell below $1935-40. The $1,900 mark is an important turning point that needs to be maintained in order to maintain a short-term bullish view.”

But Wong says it is an opportunity to buy gold. “With Joe Biden in the White House and Democrats in control of Congress, this is an environment of permission to spend, not a lower gold price.”

Gold remains a supportive hedge against inflation as investors anticipate more fiscal stimulus from the Democratic Party of Japan.

Analysts generally expect the Democratic-controlled Senate to have a positive impact on global growth, which would be positive for most riskier assets, but negative for bonds and the dollar as the U.S. budget and trade deficits swell further.

Democrat Jon Ossoff defeated Republican David Perdue in the Georgia Senate run-off, cementing his party’s hold on Congress and the White House, NBC predicted Wednesday. Democrat Raphael Warnock is expected to defeat Republican Senator Kelly Loeffler in another runoff in the state.

The victories give Democrats and Republicans 50 percent each in the Senate, and in the event of a tie, Harris’s casting of the deciding vote would give Democrats a slim majority.

David Meger, director of metals trading at High Ridge Futures in New York, said the pullback was a short-term move given the potential for a “blue wave” in the U.S. Senate, which would be negative for the dollar and “support gold and silver over the longer term.”

Riots erupt in Washington as US Congress prepares to certify election results

The turmoil in Washington was also on the market’s radar. On January 6, local time, the US Congress held a joint session to confirm the election results. Hundreds of protesters gathered in Washington, D.C., to demonstrate in support of President Donald Trump and put pressure on the ongoing joint session of Congress.

On January 6, a joint session of the U.S. Congress officially counted the electoral votes, certified the Electoral College votes and declared the official results of the presidential election.

US President Donald Trump told a crowd of supporters at a rally outside the White House on January 6 that “we will never back down.” In his speech, Trump also claimed that “hundreds of thousands” of people showed up at the “Save America” rally. In his speech, Trump repeatedly stressed that far-left Democrats and the fake news media would not be allowed to “steal the results of our election”, telling supporters, “We will never give up, we will never back down.” “This country has had enough, and we will not tolerate it anymore,” he said. According to the report, Trump’s supporters cheered when he made the remark.

Some demonstrators broke into the parliament building and clashed with police. News agency NBC has confirmed that US law enforcement officers chose to open fire when supporters of President Donald Trump stormed the US Capitol. One female protester was shot inside the US Capitol building. At least five people have been taken to hospital for emergency treatment so far.

NBC News correspondent Rachel Scott said he saw blood gushing from the woman, who within 15 minutes was put on a stretcher, then put in an ambulance and taken to a hospital. The Associated Press confirmed at 3:06 p.m. local time on January 6 that the woman who was shot had died.

Mr Trump then urged the throngs of supporters in and around the US Capitol to “go home now” while continuing to insist that his re-election had been “stolen”. “I know your pain, I know you are hurt,” he said in a video posted on Twitter. “Our election was stolen, it was a landslide, and everyone knows it, especially the other side. But you must come home now, and we must have peace. We have to have law and order, and we have to respect our great people in law and order.”

Biden also spoke, calling for an end to the violence. He also asked Mr. Trump to give a televised address to get his supporters to stop the violence. Biden said for demonstrators who stormed the Capitol building, smashed Windows, occupied offices, invaded the halls of Congress and threatened the safety of official elected officials, this is no longer a protest, it is an insurgency. “I call on this mob to step back and let the cause of democracy move forward, and I urge President Trump to demand an end to this siege on national television,” he said.

Former US presidents Barack Obama, Bill Clinton and George W. Bush condemned the violence at the US Capitol in separate statements on Monday.

The violence on Capitol Hill was the first time the building had been breached since the British stormed and burned the Capitol in 1814, according to the director of academic and operations for the Congressional Historical Society.

On the night of January 6, after violent riots broke out at the Capitol, Vice President Mike Pence announced the reconvening of a joint session of Congress to certify the results of the U.S. presidential election.

As president of the Senate, U.S. Vice President Mike Pence presides over a joint session of Congress to oversee the process of certifying the Electoral College vote, as required by constitutional procedure.

The Electoral College, which closed on December 14, declared Democratic presidential nominee Joe Biden the winner of the 2020 election with 306 votes.

In a letter to her colleagues, House Speaker Nancy Pelosi said they decided to reconvene. “We always knew that this responsibility would take us into the night,” she says.

Senate Majority Leader Mitch McConnell said the House of Representatives would vote on the Arizona vote between 23:30 local time and midnight on January 6 (12:30 to afternoon Hong Kong time on January 7).

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