Biden to Significantly Increase the Capital Gains Tax on the Rich / Gold Prices Fell Slightly

The Director of the White House National Economic Council, Lyndis, revealed that President Biden will implement the proposal to impose a higher capital gains tax on the wealthy, and the impact will be those with an annual income of more than one million U.S. dollars, which is estimated to be about 500,000. He also pointed out that the new tax will help reduce the cost of long-term infrastructure investment, while reforming the US tax band will also help create jobs. However, Liondis did not disclose the tax rate, but it is estimated that the tax rate for profits from investment will be significantly increased from the current 20% to 39.6%.

After rebounding for two consecutive days, the price of gold has dropped from its weekly high cautiously, and is currently hovering near $1780. Both U.S. bond yields and the weakening of the U.S. dollar can provide support for gold prices, but before a key event and the US stimulus measures become clear, most gold investors are in a wait-and-see attitude. Texas will get a new seat in the U.S. House of Representatives, implying that Republicans may gain more control of the Senate, prompting U.S. President Biden to be tested more on infrastructure projects. As the global new crown epidemic heats up, it continues to pose a threat to the recent gold bulls. As of 08:17 Hong Kong time, the price of gold rose slightly by 0.04% to US$1,781.70.