Spot gold jumped short and opened low on Monday, falling below the $1560/ounce mark. The gold price has just suddenly accelerated its decline in the short term, reaching a minimum of US $1554.20 per ounce.

The latest news from the situation in North Korea has improved the market risk appetite. In addition, the dollar index rebounded slightly, which also put pressure on the gold price.

On Monday, according to Axios, the US National Security Agency said that US President trump had made contact with North Korea.

Robert O'Brien, the national security adviser of the United States, said that the United States has contacted the DPRK and let the other party know that the United States hopes to continue the consultations held in Stockholm last October and that the negotiations can be back on track and that the DPRK will resume its commitment to the denuclearization of the peninsula.

O'Brien said that North Korea "promised to send Christmas gifts". The president suggested that he send him a vase. We didn't get a vase or any other kind of Christmas present. This seems to be positive.

O'Brien added, "we only know that we were told to receive Christmas gifts, but the Christmas gifts did not come. So I think this is an encouraging sign. However, this does not mean that we will not see some form of test in the future."

Pay attention to the progress of Trump's impeachment

Pelosi, the speaker of the US House of Representatives, said last Friday that she would instruct the house of representatives to submit a clause impeaching president trump to the Senate this week. This means that the Senate will start the trial of Trump's impeachment case as early as this week.

Pelosi said in a letter to her colleagues in the house of Representatives: "I have asked Nadler, the chairman of the Judiciary Committee, to submit a resolution appointing managers next week and submit the impeachment clause to the Senate."

Earlier, Pelosi repeatedly postponed the plan to submit Trump's impeachment clause because she failed to reach an agreement with the Senate on the impeachment trial provisions of US President trump.

However, Pelosi is facing increasing pressure to submit impeachment provisions, not only from Republicans, but also from Democrats. Before these Provisions are submitted, the house of representatives still needs to vote on the impeachment of executives or the names of members of the house of Representatives, who will play the role of prosecutor in the trial of the president by the Senate.

On December 8th, 2019 local time, the US House of Representatives passed two impeachment provisions against President trump, namely, "abuse of power" and "obstruction of congressional investigation". However, due to disputes with the Senate, Pelosi did not immediately transfer the impeachment clause to the Senate for trial.

On December 18 last year, the house of representatives of the United States Congress controlled by Democrats voted to pass two impeachment provisions against trump, formally accusing him of abusing his power and obstructing Congress. Trump became the third president impeached by the house of representatives in American history.

On January 11, trump once again launched a "push wave". He repeatedly criticized Pelosi and the Democratic Party, reiterating that the Democratic Party's hearing was full of "unfairness and Prejudice" and "it has no effect except to prove my complete innocence". Trump also declared once again that Pelosi would be "the worst speaker of the house of representatives in history".

In the trial in the Senate, if more than two-thirds of the members of the Senate found president trump guilty, trump would be dismissed and vice president Burns would take over. However, if less than two-thirds of the members of Parliament believe trump is guilty, trump will be completely pardoned and remain in office.

In the current Senate, Republicans occupy 53 seats, Democrats occupy 45 seats, and independents occupy 2 seats. Since the overwhelming majority of Republicans have expressed their support for trump, there is little chance that trump will be impeached and step down.

Keep an eye on these two heavyweight data

This week, the United States will release at most important economic data, of which the consumer price index (CPI) and retail sales in December are the most concerned.

Analysts pointed out that if the inflation and retail sales data are weaker than expected, it may increase people's concern about the prospects of the U.S. economy, thus aggravating the bearish tone of the dollar.

Bart melek, head of global strategy at dominion securities, said, "the most important thing is CPI."

Melek believes that any disappointing performance in economic data will have a positive impact on gold prices.

Outlook of gold Aftermarket

The United States will release at most important economic data this week, among which the consumer price index (CPI) and retail sales in December are the most concerned.

Analysts pointed out that if the inflation and retail sales data are weaker than expected, it may increase people's concern about the prospects of the U.S. economy, thus increasing the bearish tone of the dollar, which will boost gold.

Bart melek, head of global strategy at Dow Jones securities, expects gold prices to fall slightly this week, but remains optimistic about the long-term trend of gold. Melek said that tensions are still likely to rekindle, which will benefit gold.

Melek believes that any disappointing performance in economic data will have a positive impact on gold prices.

Jonathan Butler, an analyst at Mitsubishi UFJ, pointed out that geopolitical and trade concerns should continue to support gold as a safe haven investment. The average price of gold will be around 1600 US dollars/ounce this year.

At 09:40 Beijing time, spot gold was reported at US $1556.60 per ounce.

Daily market hot spot tracking

On Monday (January 13), in the morning of the Asian market, spot gold suddenly fell rapidly in the short term, falling below US $1555/ounce. This week, investors will focus on the signing of the agreement and the latest progress of Trump's impeachment. In terms of economic data, US CPI and retail sales may have an important impact on the market. Of course, investors still need to keep an eye on the further development of the situation in the Middle East, and any unexpected news may stimulate market fluctuations.