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Gold price driven by events in US

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Analysis by Golden FX Link business manager Chea Prasith.

Gold price driven by events in US

Since early December last year, the price of gold rose steadily from $1,800 per ounce to $1,940.

A host of events unfolding in the US early this year have influenced the price of the precious metal – the transfer of power to incoming president Joe Biden, the alarming rate of Covid-19 cases, the Senate election in Georgia, the Federal Reserve meeting outcome on January 7 and the non-farm payroll.

According to Worldometer’s Covid-19 data released on January 8, the infection rate in the US had risen to 22 million, with the death toll having increased to more than 374,000 – the highest in the world.

The Democratic victory in Georgia in the Senate election and the announcement of the US Federal Reserve’s report of its first monetary policy meeting for 2021 have played a key role in influencing the price of gold this week.

Major institutions and investors have been focusing on the main points, such as quantitative easing policies and the conditions of interest rate adjustment.

On Friday, the US National Bureau of Statistics will release its December 2020 employment report in which the number of jobs created is projected at 69,000 – a huge drop compared to the 245,000 in November last year.

These developments are critical for every gold investor regarding whether or not to buy or sell the precious metal next week.

In addition, based on technical analysis, the price of gold broke the first price bar at $1,860 and the second at $1,890, and is heading towards $2,000 per ounce.

In the last week of December, the gold price hit a record high of $1,900 per ounce in just an hour.

Therefore, investors should buy gold when the price rises to $1,956 per ounce and take the first profit at $1,980, and the second at $2,000, with the stop-loss at $1,947.

And when prices fall to $1,917 per ounce, buy gold and take the first profit at $1,929, and the second at $1,945, with the stop-loss at $1,911.

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