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Market News Gold soars and try to top $1900(With Trading Strategy)

Gold soars and try to top $1900(With Trading Strategy)

Biden to sign 17 executive actions, orders to reverse Trump policies, restore Obama-era programs on the first day.

LEO
2021-01-21
619

黄金粉末.jpeg


Gold rose to a two-week high on Thursday as the dollar eased on hopes of further stimulus under the Joe Biden administration, although bullion's gains were limited by some profit booking.


The spot gold fell 0.2% to $1868.77 per ounce by 15:50(GMT+8) on Wednesday.


"The path of least resistance is lower. There is a lot of stimulus coming down and that's likely to boost inflation expectations and growth," said DailyFX currency strategist Ilya Spivak.


But, in that scenario, the Federal Reserve will look to hold back on policy support and probably start thinking about unwinding current policy measures, which will boost the dollar and undermine the value of gold, he added.


U.S. President Joe Biden's $1.9 trillion stimulus plan will be in focus as he gears up to jump-start his government's response to the COVID-19 pandemic, which has claimed more than 400,000 lives and upended the world's largest economy.


President Joe Biden took 17 executive actions on Day One.


On his first day in office, Biden issued 17 executive orders, presidential memoranda and agency directives, from directing the Covid-19 pandemic response to canceling the Keystone XL pipeline. Nine of the 17 actions directly reverse former President Donald Trump's policies.


1. Launches a "100 Days Masking Challenge" asking Americans to wear masks for 100 days. Requires masks and physical distancing in federal buildings, on federal lands and by government contractors, and urges states and local governments to do the same.


2. Stops the United States' withdrawal from the World Health Organization, with Dr. Anthony Fauci becoming the head of the delegation to the WHO.


3. Creates the position of Covid-19 Response Coordinator, reporting directly to Biden and managing efforts to produce and distribute vaccines and medical equipment.


4. Extends the existing nationwide moratorium on evictions and foreclosures until at least March 31.


5. Extends the existing pause on student loan payments and interest for Americans with federal student loans until at least September 30.


6. Rejoins the Paris climate accord, a process that will take 30 days.


7. Cancels the Keystone XL pipeline and directs agencies to review and reverse more than 100 Trump actions on the environment.


8. Rescinds the Trump administration's 1776 Commission, directs agencies to review their actions to ensure racial equity.


9. Prevents workplace discrimination on the basis of sexual orientation or gender identity.


10. Requires non-citizens to be included in the Census and apportionment of congressional representatives.


11. Fortifies DACA after Trump's efforts to undo protections for undocumented people brought into the country as children.


12. Reverses the Trump administration's restrictions on US entry for passport holders from seven Muslim-majority countries.


13. Undoes Trump's expansion of immigration enforcement within the United States.


14. Halts construction of the border wall by terminating the national emergency declaration used to fund it.


15. Extends deferrals of deportation and work authorizations for Liberians with a safe haven in the United States until June 30, 2022.


16. Requires executive branch appointees to sign an ethics pledge barring them from acting in personal interest and requiring them to uphold the independence of the Department of Justice.

 

17. Directs OMB director to develop recommendations to modernize regulatory review and undoes Trump's regulatory approval process.


Gold is considered a hedge against inflation that can result from stimulus measures.


The United States surpassed 400,000 deaths due to COVID-19 on Wednesday, while Britain reported a record daily number of deaths.


The World Health Organization plans to approve several COVID-19 vaccines from Western and Chinese manufacturers in coming weeks and months.


The European Central Bank will keep its easy money policy unchanged on Thursday but hold the door wide open to further stimulus as the spreading second wave of COVID-19 dims an already weak outlook.


British inflation gathered speed in December, starting what is expected to be a climb this year as pandemic-fighting measures, Brexit and a recovery in the economy combine to push up costs for consumers and businesses.


Trading Strategy (source: Trading Central)

Pivot: 1861.00


Our preference: long positions above 1861.00 with targets at 1885.00 & 1898.00 in extension.


Alternative scenario: below 1861.00 look for further downside with 1853.00 & 1843.00 as targets.


Comment: the RSI calls for a bounce.


Supports and resistances:

1908.00

1898.00

1885.00

1875.00 Last

1861.00

1853.00

1843.00

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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