In the past week, spot gold rose slightly, hitting the 1900 mark. US President Trump unexpectedly signed a new round of stimulus plan, which suppressed the US dollar and provided gold’s attractiveness, and the new crown epidemic further deteriorated, especially the new mutant strain. The proliferation of China has suppressed market sentiment and provided safe-haven support for gold prices; however, the new crown vaccine began to be vaccinated, global stock markets rose, and traders took leave at the end of the year, which slightly suppressed the upside of gold prices.
U.S. President Trump unexpectedly signed into law the $2.3 trillion new crown relief and spending bill last Sunday (December 27), restoring unemployment benefits to millions of Americans and avoiding a partial federal government shutdown. This surprised the market.
Because Trump has previously threatened that if Congress does not increase the subsidy from $600 to $2,000 and cut other expenditures, he will block the $2.3 trillion aid and spending package.
After Trump accidentally signed this package, global markets were boosted. As Trump’s signing of the aid bill promoted bets on economic recovery, major Wall Street stock indexes hit a record high on Monday, financial and energy stocks rose, the safe-haven dollar was suppressed, and the weakening of the dollar provided support for gold prices.
Technically, gold is still showing an overall upward trend, and the price is almost close to the orbit of the Bollinger Band within a week, but it has not achieved an effective breakthrough. The overall momentum of MACD is upwards without divergence, and the momentum is relatively sufficient.
You can still see bullish gold in the coming week, and the 1900 integer is the key.