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  • Gold picks up the bids after Wednesday’s showdown that dragged it back from two month high to heavy losses.
  • US political system criticizes Republicans after recent mob attack on Capitol Hill, Democrats are ready to take the Senate.
  • Virus woes are firming in the UK, global ire against China prevails but nothing more than the US developments.

Gold prices regain upside momentum, currently around $1,922, during the early Asian session on Thursday. The yellow metal took a U-turn from November highs just to post the biggest losses since early December as US geopolitics grabbed the headlines on Wednesday. Although the Capitol Hill coup is mostly over, American policymakers are still active to oust Republicans from power.

Capitol secured but Senators remain angry…

With the US officials declaring that the Capitol Building is safe now, after a mob attack that forced policymakers to leave and shot a woman who died recently, American ire against Trump supporters mount off-late. Even if US President Donald Trump tried to placate supporters that stormed the nation, while also terming the election as stolen, some in the US Senate prepared to impeach Mr. Trump. Chatters are also crossing wires that some Republicans join the cause and are ready to work overnight to let the Democrats firm up the grips in the Senate.

Recently, Jon Ossoff won the Senate elections in Georgia and hence Democrats are likely in the need of the tie-breaking vote of Vice President-elect Kamala Harris. US President-elect Joe Biden is ready to release the $2,000 paycheck and has the support of Senate Democratic leader Chuck Schummer. However, an official back-up and swearing-in ceremony are awaited to boost the risks.

On the other hand, the UK’s hospitals are likely to be flooded by the coronavirus (COVID-19) cases, per the leaked document from Britain’s National Health Services (NHS) cited by the HSJ news. However, the Tories are pushing for vaccinations and told general practitioners to turn down routine patients for such a cause, per The Telegraph.

Elsewhere, China’s reluctance to cooperate on virus tracing investigations and Hong Kong activists’ detentions propel global ire against Beijing. Further, the New York Stock Exchange’s (NYSE) decision to rethink over the delisting of Chinese stocks and US President Trump’s executive order to ban business with eight Chinese applications portray the US-China tension.

Against this backdrop, the Wall Street benchmark closed Wednesday’s trading on the positive side while the US dollar index (DXY) dropped to the March 2018 low.

Moving on, US policymakers’ electoral votes and updates on who will hold the power in the Senate will be the key. Also important are news concerning China and the virus. Considering the likely consolidation, gold prices may cheer the US dollar’s weakness and can gain further if American policymakers welcome Democrats in Capitol Hill.

Technical analysis

Although an ascending trend line from November 30, at $1,906 now, favor gold buyers, November high around $1,965 guards immediate upside of the yellow metal.