Daily Brief, December 30 – Everything You Need to Know About Gold Today!

Prices for the precious metal, GOLD, closed at 1,878.16, after placing a high of 1,886.29, and a low of 1,871.59. On Tuesday, the GOLD prices surged because of the prospect of additional US stimulus, which raised the demand for the yellow metal and weighed on the US dollar, with US lawmakers set to address President Donald Trump’s request for larger coronavirus relief checks this week. The US Dollar Index fell by 0.3%, against a basket of six currencies, supporting the upward momentum of the yellow metal and raising its prices. However, gold remained steady above the $ 1 800-an-ounce mark, with the US Senate due to decide on President Donald Trump’s demand for $ 2,000 coronavirus personal relief checks for Americans.

Last week Thursday, Trump made a shocking statement, saying that he would not sign the Congress-approved $ 900 billion pandemic relief bill and an accompanying government funding bill of $ 1.4 trillion, demanding an increase in the personal aid checks of $ 600 for every qualifying American to $ 2,000. As President Donald Trump did not participate in the negotiations for the coronavirus relief bill, his motives remain questionable. However, this resulted in a very rare situation in which the Democrats stood behind the president.

On Sunday, Trump did an about-turn and suddenly signed the bill, saying that he had managed to convince the Republicans to agree on sending separate checks to Americans to make up for the $ 2,000 paychecks. However, when the Democrats tried to have that allocation approved in Tuesday’s Senate session, Republican Majority Leader Mitch McConnell objected. As it stands at the moment, the Democrats now have six Republican senators backing them, and only need six more votes to pass the Trump maneuver. Meanwhile, the president tweeted on the matter all Tuesday, trying to pressure McConnell into agreeing to pass the CARES Act.

Another reason behind the weakness of the US dollar was the spread of a new variant of the coronavirus, first discovered in the UK, to the US. On Tuesday, health officials in Colorado said that the first case of the new and potentially more infectious coronavirus strain had been confirmed in the United States.

Health officials confirmed the case and notified the Centers for Disease Control and Prevention. The infected individual was held in isolation in Elbert Country. Officials reported that the person was in his 20s and had no travel history. The report that a new, more contagious variant of the coronavirus had reached the US raised concerns for economic recovery and weighed on the US dollar, ultimately adding to the gains in gold.

On the data front, at 19:00 GMT, the S&P/CS Composite -20 HPI for the year from the United States came in, showing a rise to 7.9% in October, from the predicted 7.0%, which supported the US dollar and capped any further upside in the prices for the yellow metal.

Daily Technical Levels
Support               Resistance
1,875.20              1,890.45
1,867.90              1,898.40
1,859.95              1,905.70
Pivot Point:        1,883.15

On Wednesday, the technical side of the market remains mostly unchanged, as GOLD prices are trading bullishly at the 1,878 level and facing immediate resistance at the 1,899 level. On the lower side, the support remains around 1,870, and violation of this level could extend the selling bias until the next support area of 1,859. The MACD and RSI support a selling bias; thus, we can expect trading in GOLD to be bearish below 1,870, and bullish above the same level today.