Gold rose sharply in the short term! Gold just broke through the $1850 mark. Washington is ready for the countdown to Biden's inauguration: 25000 troops!

In Asian trading on Wednesday, the dollar index fell under pressure and is now trading around 90.35; spot gold rose rapidly in the short term, and the gold price just broke through the $1850 / oz mark. Local time at noon on January 20, the inauguration of the new president of the United States will be held in Washington, investors pay close attention to this focus event, which may become the next "catalyst" of the gold price trend. Analysts point out that if riots occur during the inauguration, risk aversion in the market may rise, and gold prices are expected to benefit.

Gold held gains on Tuesday as the dollar remained under pressure and the prospect of more stimulus boosted gold's attractiveness as a hedge against inflation. Spot gold closed Tuesday at $1840.13 an ounce, up $3.04, or 0.17%. In Asian trading on Wednesday, the price of gold rose rapidly in the short term, reaching as high as 1850.34 US dollars per ounce at one point.

On January 19, local time, the U.S. Senate Finance Committee held a hearing on the nomination of Yellen as U.S. Treasury Secretary. In her testimony, Yellen urged lawmakers to "take big action" on the next coronavirus mitigation plan, adding that the benefits outweigh the costs of a higher debt burden.

"neither the president-elect nor I have taken into account the debt burden of the United States when we put forward this plan," Yellen said. But with interest rates now at historic lows, the wisest thing to do is to take drastic action. " Yellen also said the value of the dollar should be determined by market forces. She added that the United States should oppose attempts by other countries to manipulate exchange rates to gain trade advantage.

Yellen told lawmakers on Tuesday that help for the unemployed and small businesses would be "the most effective," explaining Biden's $1.9 trillion coronavirus relief plan. In response to the committee's question, Yellen said that "the relief we provide to those who need help most and small businesses" will help the economy the most.

Yellen, who served as chairman of the Federal Reserve from February 3, 2014 to February 5, 2018, is the first female head in the history of the Federal Reserve. If the nomination is confirmed by the Senate, Yellen will once again make history and become the first woman in the United States to hold the post.

"the main factor seems to be the dollar," said Michael McCarthy, chief market strategist at CMC Markets. McCarthy added that despite the recent rebound in the dollar, there will be further declines, which will support gold prices.

Simon Harvey, senior currency analyst at Monex Europe, said: the market expects to return to the idea of a quick fiscal stimulus in the US. It has always been believed that a large fiscal stimulus package will have broad bipartisan support in the Senate rather than a lengthy reconciliation process. "

Biden announced a $1.9 trillion stimulus package last week, with Americans receiving $1400 in cash and a $2000 bailout package passed by Congress in December 2020. Unemployment insurance will be increased to $400 a week from the current $300 and will be extended until September.

Daniel Ghali, commodities strategist at TD Securities (TD Securities), said the dollar "will be driven by market forces, which are pointing to a weaker dollar."

Jeffrey Sica, founder of Circle Squared Alternative Investments, said the possibility of more stimulus measures was very good for gold prices. "the dollar will fall sharply, which will greatly boost the price of gold in the near future," Sica said.

"Central bankers around the world are aware that despite the good performance of the stock market, the economic fundamentals are still very weak and stimulus measures are needed," said Michael Langford, director of the AirGuide for corporate consulting.

Gold is considered to be a hedge against inflation and currency depreciation.

Joe Foster, a portfolio manager at VanEck International Investors Gold Fund, said inflation could exceed the Fed's 2 per cent target as early as April, and the high inflation environment would be the main catalyst for gold prices to break through record highs and reach more than $3000 an ounce.

Jeff Wright, executive vice president of GoldMining, pointed out that Tuesday's rally in gold prices was clearly related to a weaker dollar, which was encouraged by Yellen's support for the bailout. Ms Yellen's so-called "big action" suggests that gold will benefit from this trend, regardless of the US deficit and its ability to balance the budget.

Oanda analyst Edward Moya said Yellen's comments could be a springboard for gold bullish as the Fed and Treasury will have better coordination and gold investors are preparing for another wave of ultra-easing.

According to the well-known website Economies.com, gold price is expected to return to the bullish track after overcoming the key resistance of $1848.60 / oz and hit its first bullish target of $1872.00 / oz.

Countdown to Biden's inauguration

Investors are still waiting for the inauguration of U.S. president-elect Joe Biden. The inauguration ceremony will be held at noon local time on January 20. In view of the attack on the U.S. Capitol on January 6, the alert level in Washington, D.C., has been raised again, and areas related to the inauguration ceremony have been put on full alert.

About 25000 armed members of the National Guard are stationed in Washington, more than the United States has in Afghanistan, Iraq and Syria combined.

Biden left his hometown of Delaware on January 19 and arrived in Washington to attend the inauguration. Before leaving for Washington, Biden said goodbye to the public in Delaware, saying he was sorry that his son, who died in 2015, could not accompany him to the ceremony.

Biden arrived at Andrews Joint military Base in Washington by special plane and returned to the capital to prepare on the eve of becoming the 46th president of the United States. He waved goodbye to the residents of his hometown of Delaware, and as he and his wife arrived in Washington and got off the plane, he waved to the media camera and drove into Washington in a black chauffeured car. Coming to the Lincoln Memorial for the lighting ceremony, Biden called on the American people to remember the lives lost during the novel coronavirus epidemic and encouraged them to begin to heal their wounds. "although sometimes the facts are difficult for us to accept and remember, this is the best way for us to heal," he said in a speech. "

Biden believes that the United States has no time to waste and must take action to solve its economic problems now. "during the COVID-19 pandemic, millions of Americans unreservedly lost the dignity and respect of their jobs and salaries," he said. We can see that many people are facing the fate of migration, and there are long queues in front of the food banks, and the real pain of the novel coronavirus epidemic has overwhelmed the real economy. "

"We have to act, we can't do nothing, and the crisis of the deep suffering of the American people is clear," Biden said. If we seize the moment, the debt situation will be more stable. The bipartisan novel coronavirus rescue plan in December was a good first step, but so far the promotion of the vaccine in the United States has been a frustrating failure. We need more action, more bipartisanship, and faster. We will develop a plan to complete 100 million doses of vaccination within 100 days and a plan to reopen schools in the first 100 days to ensure that sick employees are paid at home. "

Washington has stepped up security measures for days after Trump supporters stormed the Capitol on January 6, entering a state of emergency on January 11 to prevent violent demonstrations before and after Biden's inauguration.

Due to the outbreak of congressional riots in the United States, coupled with the severe epidemic of COVID-19, the scale of this year's US presidential inauguration ceremony will be greatly reduced. Us media said that this will be the inauguration ceremony that has never been held in the history of the United States. In previous US presidential inaugurations, the government will hand out 200000 tickets, but this year it has fallen to about 1000, with only members of Congress, former presidents and dignitaries attending.

The National Mall, which is located between the Capitol and the White House and surrounded by museums, is no longer open to the public, the report said. Washington Mayor Muriel Boozer (Muriel Bowser) said Sunday that law enforcement officials had no choice but to step up security after the deadly attack on the Capitol.

(FBI) of the Federal Bureau of investigation has previously warned that armed demonstrations may take place outside all 50 state capitol buildings from the 16th to Biden's inauguration on the 20th.

The United States Secret Service announced on January 15 that before Biden's inauguration on January 20, there would be militarized "red zones" and "green zones" in Washington, D.C., a measure that lasted until the 21st. According to Russian media RT, the red and green zones include the White House, the Lincoln Memorial, the National Mall and areas near Congress.

According to the US military website on January 19th, the Pentagon has been transferred from Washington, D.C., and sent home after officials confirmed that 12 members of the National Guard had been "marked" during the FBI vetting process. Us military officials said on January 17th that they were worried that security personnel at the president's inauguration ceremony would launch an "internal attack", so investigators conducted security checks on the personnel concerned.

Us Defense Department spokesman Hoffman (Jonathan Hoffman) confirmed that 12 national soldiers had been dismissed and sent home. But he said only two of them had made inappropriate remarks and words related to the inauguration, while the other 10 were aimed at other potential problems, such as criminal activities previously involved.

"the review of the deployment of soldiers at the inauguration is to identify potential links to any suspicious behavior in the past, not just extremism," Hoffman said. Out of careful consideration, we will take immediate action to remove the relevant personnel, whether through law enforcement personnel or the national army command system, we will begin to solve these problems. "

In response to security concerns, acting US Attorney General Jeffrey Rosen called for the maintenance of peace and order on the inauguration day of the new president, encouraging an orderly transfer of power and claiming that anyone who attempted violence would be arrested and prosecuted. Rosen pointed out that the previous acts of violence in the U.S. Capitol are intolerable. He promised that the Federal Bureau of investigation and the National Guard will strengthen security measures and will not leave room for crime at the inauguration ceremony.

"the American people have made it clear that they will not allow violence to go unanswered," Rosen stressed. Violence and senseless crime are not the right way to resolve differences or promote change in our country. All Americans should seek a peaceful inauguration, because the Constitution and traditions of the United States depend on it. "

Acting US Defense Secretary Christopher Miller confirmed on January 18 that it was a "normal process" for 25000 members of the National Guard who assisted in the security of the new president's inauguration to undergo background checks and that there was no intelligence indicating a security threat within the National Guard.

On January 15, the Chinese Embassy in the United States issued an important notice on its website. In view of the public order and epidemic situation in the United States, Chinese citizens and institutions in the United States are reminded to raise their awareness of security and avoid going to parades, fairs and other areas where people gather, the notice said.