Gold inches higher on hopes of further U.S. stimulus(With trading strategy)
Trump threatens to not sign COVID-19 bill, wants bigger stimulus checks.

Gold prices edged higher on Wednesday as grim U.S. consumer and housing data bolstered hopes for further stimulus to support an economic recovery from the pandemic-induced slump.
11:50(GMT+8), the spot gold rose 0.37% to 1866.21.
A new coronavirus strain in the UK has caused several countries around the world to shut their borders to Britain and drugmakers to scramble to test their Covid-19 vaccines against it.
Weekly Covid-19 infections rose by the highest since the pandemic began, with the United States reporting the most number of cases for any single country, the World Health Organization said on Tuesday.
U.S. Congress passed a massive Covid-19 aid and government funding package overnight aimed at bolstering the nation’s battered economy.
But Trump slams COVID-19 relief bill, asks for changes after bitter negotiations.
Trump said he wants Congress to increase the amount in the stimulus checks to $2,000 for individuals or $4,000 for couples, instead of the “ridiculously low” $600 for individuals that is in the bill.
Trump also complained about money provided for foreign countries, the Smithsonian Institution and fish breeding, among other spending that is in the part of the legislation to fund the U.S. government.
“I’m also asking Congress to immediately get rid of the wasteful and unnecessary items from this legislation, and to send me a suitable bill, or else the next administration will have to deliver a COVID relief package. And maybe that administration will be me,” said Trump, who has continued to push baseless claims that he won re-election in November.
Data on Tuesday showed U.S. consumer confidence dropped to a four-month low in December, while U.S. existing home sales also fell in November.
The U.S. economy grew at a record pace in the third quarter, the Commerce Department said, revising up its estimate for gross domestic product.
U.S. President-elect Joe Biden said his administration would put forward another Covid-19 relief package next year, including a new round of stimulus payments.
The European Union is ready to continue negotiations with Britain past the end of the year, sources said after an update on Brexit by the bloc’s negotiator, Michel Barnier.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.20% to 1,167.53 tonnes on Tuesday from 1,169.86 tonnes on Monday.
Trading Strategy (source: Trading Central)
Pivot: 1881.00
Our preference: short positions below 1881.00 with targets at 1861.00 & 1850.00 in extension.
Alternative scenario: above 1881.00 look for further upside with 1892.00 & 1898.00 as targets.
Comment: the RSI is bearish and calls for further downside.
Supports and resistances:
1898.00
1892.00
1881.00
1869.00 Last
1861.00
1850.00
1842.00
Guideline for Trading Central strategy
Trend chart reading guideline
1. First look at the time period in the upper left corner of the chart: ·30MIN and 1H chart shows the trading suggestions for intraday ·Daily chart shows the market trend analysis in next 2-3 days
2. The blue horizontal line on the chart marks the pivot: pivot indicates the reversal of the market. When the price is above the pivot, it indicates an upward trend, when the price is below the pivot , it indicates a downward trend. When the price breaks through the pivot, the trend is reversed.
3. The red and blue thin curves in the Candlestick chart chart are technical indicators: Red line is MA20+Bollinger bands, Blue line is MA50. under the Candlestick chart chart are also the technical indicators: Blue line is RSI, Red line is 9MA;
4. The green horizontal line is the resistance level for a price increase, and is also the profit target for long orders; the red horizontal line is the support level for a price decrease, and is also the profit target for short orders.
How to use TC strategy?
1.[Pivot] is the reversal line of the market trend. When the price up the pivot line which means in Bullish, you can open a long position or Buy. on the contrary, when the price under pivot line which means in bearish. You ‘d better make short positions or Sell.
2. [our preference] is the main trading suggestion for your reference. You can exit your trading refer to this target or close positions before it.
3. [Alternative scenario] is the plan B for your reference.
4. [Comment] is the technical analysis of market trends and technical support for trading strategies.
5. [Supports and resistance] Supports are levels where the price tend to find support as it falls.
Resistances are levels where the price tend to find resistance as it rises. So, exit before the trend reverse.
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