Pelosi and Mnuqin are moving closer to reaching a stimulus plan, and gold is soaring

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[b]​Young heart, tears in my eyes, I am the golden carp[/b]
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Today, gold has been rising all the way, with the highest currently recorded1923The awkward position is that in this morning's video analysis, the short-term bearish view on gold was not achieved by the market, but this rise was entirely due to the optimistic expectations of the market for the news. As the election approaches, I still find it difficult to believe that the economic stimulus, which is mixed with political factors, can be successfully implemented. I hope investors still don't be overly optimistic.


Speaker of the United States House of Representatives, Nancy Pelosi, stated on Tuesday that she holds hope for reaching an agreement on a stimulus plan this week, which is crucial for passing the relevant bill before the election. This has raised market expectations for a new round of stimulus plans before the election, and the US index has continued its decline, hitting a new low in a month92.99Provide support for gold prices.


However, Senate Majority Leader Mitch McConnell has warned the White House not to rush11month3Recently, we agreed to a larger agreement led by Pelosi. Pelosi's spokesperson stated that the negotiations will continue on Wednesday. The stimulus bill is currently being written, and in order to reach a compromise, more discussion is needed in some areas, including providing assistance to state and local authorities, as well as providing aid to working families.  This is the plan. It's also what I hope for, "Pelosi said of reaching a compromise this week. She made this statement during a conversation with reporters after her last conversation with Finance Minister Mnuqin on Tuesday. Aid can be distributed early next month.


The White House has also expressed a certain degree of optimism about the progress. The Chief of Staff stated that 'everyone is working hard' to reach an agreement no later than the weekend, but he warned that there are still some unresolved issues. What I want to emphasize is that our differences are not just about wording and how much it costs, we still have a long way to go


Analysts point out that even if both sides can reach an agreement, Senate Republicans may still be a hindrance. Many Republican lawmakers have expressed opposition on a scale no less than1.8A trillion dollar stimulus package. The expected size of the House Democrats is2.2Trillion US dollars. Trump said on Tuesday that he hoped the number would be larger than that of the Democratic Party.


And Trump said that Senate Majority Leader McConnell would promote any agreement reached between the White House and Pelosi. As long as there is an agreement, he will follow. It can also be considered as expressing one's attitude and desire towards the bill.


But overall, the market has already fallen through, and last Sunday and this Monday, the market is expected to48Reach an economic stimulus bill within hours. This fact is unquestionable, and gold has also been operating as expected to bear pressure on the axis position of the technical channel. Therefore, I believe there is still a short-term trend in gold trading1925The opportunity to be bearish, after all, in the light of the volatile trend and the economic stimulus bill that has not yet been achieved, the main force will also ambush a wave of short selling during this period, which will promote the position of retail investors in the market.


[b]Today's technical analysis:[/b]
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[/b][align=center][img]http://mpimg.cnfol.com/ueditor/202010/21/1603272702483899.jpg[/img][/align]
Looking at the Market at the Golden Four Hour LevelRSIIndicators cannot provide clear guidance, starting fromKOn the line, the market is clearly in a bullish upward trend. The fluctuation uplink channel we provided earlier has not yet been breached, so according to the trading plan, this channel can still be used, so we can see that I have marked it in the figure1925The pressure position of the axis in this channel.


So when there is no physical positive line breaking through this position in four hours, we choose to rely on the suppression of this position to short the gold and look towards it1900If the market breaks through the suppression of this trend line strongly, we will choose the market to step back1925When to enter and bullish the target1950High order is sufficient.


Author: Jinshi Dali
Deadline:2020/10/21
The above views are for reference only and do not serve as a basis for firm trading. The article is written by Jinshi Dali, and if reprinting is required, one must obtain their consent or indicate the source. If my article is reprinted without my consent, legal responsibility will be pursued in accordance with the law.