International market analysis and insights from Stephen Innes, Chief Global Market Strategist at Axi,
Focus is completely on the Georgia Senate elections on January 5th, which could determine the control of the US Senate and Washington’s ongoing discussion about larger stimulus payments.
The results of Georgia’s two Senate elections on Tuesday are crucial for determining the future’s political landscape.
As of now, the current make-up of the new Senate is 50-48 Republican. Should Democrats win both races, this would put the balance at 50-50 with the Democrats having the tiebreaker with Vice President-elect Harris.
And with the polls shading to a Democratic sweep such a result guarantees larger stimulus checks will be mailed out forthwith, and massive U.S. infrastructure spending packages get fast-tracked through Congress in Q1. All of which is sending risk sentiment through the roof.
But a bigger US stimulus boost cannot be good for USD which is already brittle and snapping under the colossal weight of the massive U.S. budget and trade deficits.
Still, the increased US debt load will be music to gold investors’ ears, and the Democratic sweep could offer the ultimate spark to put gold above USD 2000/ounce.