Spot gold continued to come under pressure in early Asian trading on Friday on trade optimism, just after it again fell below the $1,550 / oz mark. The dollar strengthened overnight on the back of strong U.S. economic data and is holding around 97.30, while a rebound in the greenback also weighed on gold. On Thursday, the U.S. Senate formally accepted articles of impeachment against President Donald Trump, meaning the senate’s impeachment trial has officially begun. This is the third senate impeachment trial in U.S. history.
Analysts said the impact of optimism over us-china trade had spurred stronger equity markets and put downward pressure on gold prices. In addition, geopolitical risks have been relatively quiet this week, preventing gold from gaining momentum.
On the morning of January 15, local time, the signing ceremony of the first phase of china-us economic and trade agreement was held in the east room of the White House. Liu He, a member of the political bureau of the communist party of China central committee, vice-premier of the state council and Chinese leader of the china-u.s. comprehensive economic dialogue signed the agreement and delivered a speech with U.S. President Donald Trump.
Trump said China and the United States would begin negotiations soon and that “all tariffs will be lifted as soon as we complete the second phase of the trade agreement.”
In response to a question on the signing of the first stage economic and trade agreement between China and the United States, Liu said the two sides reached the first stage economic and trade agreement on the basis of equality and mutual respect. The agreement addressed the concerns of both sides to a considerable extent and achieved mutual benefit and win-win results.
“Gold is now weaker against the backdrop of stronger equity markets,” said Bob Haberkorn, senior market strategist at RJO Futures.
SMC Global, meanwhile, said the gold daily line remained mostly in a tight range after Wednesday’s agreement between China and the U.S., as investors continued to hesitate about existing tariffs and pending issues and held back from selling gold. Participants are expected to maintain consolidation patterns until new trade news is released.
U.S. data on Thursday showed retail sales rose 0.3 percent in December, compared with expectations for a 0.3 percent raise and a 0.2 percent gain. Comments pointed to a third straight month of growth in U.S. retail sales. Retailers had reported a drop in holiday sales due to reduced foot traffic at department stores, but December data showed retail sales still rose. The data suggest that households are still buying a lot of goods even as motor vehicles are buying less, which could reinforce the view that the economy will continue to grow at a moderate pace by the end of 2019.
Meanwhile, the number of Americans filing new claims for state unemployment benefits fell to 204,000 last week from an expected 216,000 to 214,000. U.S. jobless claims fell for a fifth straight week last week, ending a rally in early December and falling more than expected, suggesting the labor market remains strong despite a recent slowdown in job growth.
The dollar index.dxy rose 25 points overnight after the data to a fresh session high of 97.37. In early Asian trading on Friday, the dollar index was trading around 97.30.
Technically, however, the dollar may have peaked recently. If the dollar does not strengthen further, that could give gold a bounce.
Dailyfx wrote on Thursday that the daily chart shows that the U.S. dollar index has been consistently blocked by a 97.50 line of resistance, or confirmed to be topping at 97.50, so the short-term outlook is tilted further bearish. If expectations are met, initial support below 97.20 and support below 97.10 will open the way for further declines below the 97.10-97.20 zone.
Historic moment for trump’s impeachment
The impeachment trial of Donald trump came to a historic moment on Thursday. The US Senate has formally accepted articles of impeachment against President Trump, meaning the senate’s impeachment trial has officially begun. This is the third senate impeachment trial in U.S. history. Mr. Trump has expressed strong disapproval of the impeachment trial, calling it a sham.
Seven impeachment managers from the U.S. house of representatives formally read out the two impeachment charges against Donald Trump in the Senate on Thursday, kicking off the impeachment trial by chief justice John Roberts and all the senators present. Chief justice John Roberts will preside over the Senate impeachment trial of President Trump.
The US house of representatives on Wednesday voted to send articles of impeachment against US President Donald Trump to the senate. On the day of the vote, 228 votes in favor, 193 against. All Republicans voted against, one democrat voted against and the rest voted for.
House Speaker Nancy Pelosi, a Democrat, on Wednesday appointed seven house Democrats to lead the impeachment process, including intelligence committee chairman Robert Schiff and judiciary committee chairman timothy Nadler. Ms. Pelosi signed the articles of impeachment against Mr. Trump.
On Thursday, Schiff, the chairman of the House intelligence committee and one of the seven impeachment managers, read the impeachment manager’s appointment resolution and the house charges against trump on the senate floor and read the articles of impeachment. That means the impeachment process officially moves from the house of representatives to the senate.
Trump’s response came after the Senate impeachment trial began. Speaking at the White House, he said his impeachment trial should move “very quickly” and again labeled it his usual “scam” and “witch hunt.”
“We have the best economy in the history of our country,” Trump said. We have the highest number of jobs. For no reason at all, I was impeached. It’s a shame. It’s a scam.”
Trump also took to Twitter to express his displeasure with the impeachment proceedings. “I’ve just been impeached for making the perfect phone call!” he wrote in all capital letters.
This is the third time in U.S. history that the Senate has tried to impeach a President. Trump thus becomes only the third US President in US history to be tried by the senate after the 17th President Lyndon Johnson and the 42nd President Bill Clinton.
On December 8, 2019, the US house of representatives passed two articles of impeachment against President Trump, namely “abuse of power” and “obstruction of congressional investigation”.
Thursday’s event is just one of many procedural events ahead of the trial, which begins Jan. 21.
Us senate majority leader Mitch McConnell said on Wednesday that the impeachment trial of Donald trump would begin next Tuesday. Mr. McConnell said the senate would meet six days a week for the impeachment trial, during which members could ask questions.
In a senate trial, if more than a two-thirds majority finds President trump guilty, he will be fired and vice President pence will take over. But if no more than two-thirds of lawmakers believe he is guilty, he will be fully pardoned and remain in office.
In the current senate, republicans hold 53 seats, Democrats 45 and independents two. The republican-controlled Senate is widely expected to exonerate Mr. Trump.