Metal traders are moving past the impeachment of President Trump and focusing more on, Joe Biden’s plans for further COVID-19 support programs scheduled to be released today.
At press time, recent price action revealed Gold futures were down by more than 0.65% to trade at/ounce $1,839.20.
Recent price patterns on the yellow metal’s chart affirms a bearish continuation pattern, on the 4-hour time frame despite the impeachment move sighted in the U.S congress, on the account metal traders are focused more on futuristic stimulus COVID-19 programs coupled with monetary policies from the U.S Federal Reserve Bank.
Also, gold traders are going short on the hard safe haven asset as recent data show an upsurge in U.S. Treasury yields and value of the greenback. The 10-year Treasury yields jumped close to its 10 month highs, thereby dampening the urge in buying precious metals at the near term.
In addition, gold traders are anticipating the future of gold remains tied to the hip of the US dollar fortunes in Q1, 2021.
US House of Representatives on Wednesday impeached President Trump for the second time charging the outgoing president with encouraging the January 6 attack on the US Capitol.
Surprisingly, ten House Republicans members broke party ranks and voted for President Trump’s impeachment.
However such move, as done little in supporting gold prices amid a significant geopolitical uncertainty in play, taking into account that recent reports suggest Majority Leader Mitch McConnell, will not convene the Senate until next week to hold a trial for President Trump.
However, positive factors for gold bugs at least in the mid-term, would have to involve the resumption of the greenback downtrend, or if the Federal Reserve Bank pulls a policy rabbit out of the hat and eases more into fragile American economic recovery, yet it seems Bitcoin is now taking the shine off gold amid record cash inflows seen in recent days from institutional investors in hedging against inflation.