On Monday, spot gold remained in a narrow range, reaching a peak of nearly $1790 at one point, setting a new high since the end of February. The US market continued to decline and closed near the day's low, with intraday amplitudes of no more than $20, and finally closed down 0.28% at $1771.08 an ounce.
Spot gold fell below the 1770 mark in early trading on Tuesday, but analysts believe that both precious metals are still on a short-term upward trend, which will continue to attract new buying interest from short-term technical traders.
So far, spot gold is trading at $1764.74 an ounce.
Abstract
Spot gold fell below the 1770 mark in early trading on Tuesday, but analysts believe that both precious metals are still on a short-term upward trend, which will continue to attract new buying interest from short-term technical traders.
On Monday, spot gold maintained a narrow range, reaching a maximum of nearly $1790, a new high since the end of February. The US market continued to decline and closed near the day's low, with an intraday amplitude of no more than $20. Finally, it closed down 0.28% at $1771.08 per ounce.
Spot gold fell below the 1770 mark in early trading on Tuesday, but analysts believe that both precious metals are still on a short-term upward trend, which will continue to attract new buying interest from short-term technical traders.
So far, spot gold is trading at $1764.74 an ounce.
Biden is willing to compromise on infrastructure bill expected in mid-July
U.S. president Joe Biden met with a group of members of both parties in Congress at the White House on Monday to push forward the draft of the U.S. infrastructure plan and discuss his work plan.
Biden told a group of bipartisan lawmakers at the Oval Office meeting that he was willing to compromise on the $2 trillion infrastructure bill and discuss the issue in the coming months. U.S. Republican Senator Mitt Romney has revealed that Biden is interested in reaching a bipartisan agreement on an infrastructure bill. At the same time, Biden also admitted that the biggest problem is "how to fund this infrastructure project."
"members of Congress have had a fruitful exchange of ideas, including the components of the plan and how to fund it," the White House said in a statement after the meeting. President Biden asked for feedback and follow-up on the proposals discussed at the meeting, while stressing that inaction was not feasible. "
Biden's $2 trillion proposal would fund roads and bridges, including projects to mitigate climate change and expand access to home and community care.
But some Republicans criticized Biden's American jobs plan for being too expensive and too broad, far beyond the scale of the traditional plan, and opposition lawmakers opposed an increase in corporate tax from 21% to 28%.
At present, Biden is under pressure from both Republicans and Democratic progressives, who believe that some of Biden's proposals are far from enough.
White House Press Secretary Jepsaki said Biden's budget will be unveiled in May. "the president's bottom line is to go all out to invest in the country's infrastructure, rebuild the economy and create millions of jobs," she told reporters at a regular news conference. "the last thing he wants to see is inaction (on infrastructure plans)."
U. S. government officials say Congress is expected to pass the bill in mid-July, so there is still plenty of time. Michelle Nellenbach, vice president of strategic planning at the bipartisan Policy Center, said that for a compromise to be reached, "both parties must have a showdown on the table": "there are indeed differences between the two parties, even if there is no legislation for infrastructure plans this year." bills may first be passed to finance highways, Internet broadband and water conservancy projects, some of which will be resolved sooner or later. "
The Senate will consider pushing ahead with $35 billion in water infrastructure legislation this week, which has broad bipartisan support but is a far cry from the amount of money Biden wants to spend.
However, for spot gold, the analysis pointed out that Biden's infrastructure bill is expected to boost the economic outlook, increase US government debt and push up US debt yields, which is disadvantageous to the safe-haven gold price.
The dollar has lost again and again.
The dollar fell yesterday, falling 0.49 per cent to 91.09, extending a five-day decline. Joseph Trevisani, a senior analyst at FXSTREET.COM, points out that this is contrary to the trend in the first three months of the year, when the dollar rose against major currencies because of higher Treasury yields and higher returns on dollar assets. The dollar remained weak in Asia on Tuesday, with a temporary report of 91.048 as of press release.
For the dollar's decline, the head of foreign exchange strategy at, Saxo Bank said the dollar's decline last week coincided with "a time when very strong US economic data failed to trigger a further decline in US debt"; the yield on US 10-year Treasuries was down nearly 20 basis points from its high for the year hit on March 30.
Valentin Marinov, head of foreign exchange research at the G10 at Credit Agricole, said that, in fact, the dollar's rally was almost a distant memory, and its poor performance seemed to reflect a clear divergence between the fall in US bond yields and the prospect of relatively active yields elsewhere.
Citi group Global Markets Inc said that the recent breakthrough in the key technical form of double peak means that the dollar is bearish. If the correlation between Treasury yields, bond volatility and the dollar rises, it could mean a further fall in the dollar.
Analysis: or just a corrective callback
Gold and silver fell in New York on Monday, adjusting downwards after gold hit a seven-week high overnight and silver hit a three-week high on Friday. But both metals are still on a short-term upward trend, which will continue to attract new buying interest from short-term technical traders. The fall of the dollar in the foreign exchange market and the recent surge in crude oil prices will also continue to benefit bulls in the metals market.
Late last week it was reported that China had issued a large number of gold import quotas and that gold prices were supported overnight. It could also lead to an increase in consumer demand for gold in China, which is already a major importer of gold. Global stock markets were mixed overnight. The three major indexes of the U. S. stock market fell after hitting an all-time high last week. Trading in the market is relatively light this week.
