Golden Morning Briefing
Today’s view of gold: short-term may fluctuate widely, and there is no trending market for the time being
Fed Vice Chairman Clarida delivered a speech at nine o’clock last night. He believed that the economic scenario is still uncertain and mainly depends on the development of the epidemic. The Fed will use all tools to help the economy recover. It also indicated the need for more monetary and fiscal support policies. These remarks will undoubtedly boost market expectations for further easing, which is positive for gold.
However, it should be noted that in response to the new round of fiscal stimulus bills, House Speaker Pelosi wrote in a letter on Tuesday, “Unfortunately, the strength of Trump’s proposal is far from reaching the level of economic support required for the epidemic and severe recession. . Significant changes must be made to correct the shortcomings of Trump’s proposal.” From these remarks, it can be seen that the two sides still have many differences and it is more difficult to quickly reach a large-scale bill in the short term.
It has been less than three weeks since November 3, and the Democrats know that this time point is beneficial to them, so it is not easy for them to regress. On the other hand, some people in the Republican Party resist large-scale stimulus, which to some extent inhibits Trump’s room for constant compromise.