Although the gold price has not yet successfully reached $1800, analysts are still optimistic about the recent trend of the gold price. The positive outlook is mainly driven by two drivers: the recent sell-off of Bitcoin and President Joe Biden's plan to nearly double the capital gains tax on wealthy Americans. Analysts said gold would continue to try to break through the $1800 an ounce mark this week, which could help gold rise further to $1900 an ounce.

Daniel Pavilonis, a senior commodity broker at RJO Futures, said: "after seeing a double bottom, the overall trend of gold is improving. This week could be the catalyst for higher precious metals, as the price of bitcoin fell and Biden announced taxes.

Bitcoin fell more than 9% on Friday, its worst week in nearly two months. On Monday, Bitcoin was trading at $50727.16, up 5.41 per cent on the day. Recent negative trends in Bitcoin could be good for gold, which has been at a disadvantage in the battle against Bitcoin's popularity.

"Bitcoin looks negative," said Nedos (Charlie Nedoss), senior market strategist at LaSalle Futures Group. The price of gold has been suppressed by bitcoin. Some natural buyers of gold have been buying bitcoins. If Bitcoin continues to decline, the next rally in gold may attract more capital, and some investors may return their attention from Bitcoin to gold.

It is reported that US President Joe Biden will propose to raise the income tax and capital gains tax rates for the rich this week, and the federal tax rate for some investors could be as high as 43.4%. The world's highest capital gains tax reaches 30%. Most of them are around 20%. The tax rate exceeds this level. Coupled with Biden's infrastructure spending plan, we may see stagflation. " Stagflation is a period in which inflation is combined with a decline in GDP. Biden's plan is affecting stocks, cryptocurrencies and, most importantly, the dollar, which is in reverse with gold.

Everett Millman, an expert on precious metals in gold coins, said: "the dollar bulls do not seem to like many of the policies introduced in Washington, including the new capital gains tax increase proposed by the Biden administration. In addition, one of the next big initiatives is infrastructure spending. Both factors are depressing the dollar, which is good for gold. " Millman explained that if the tax structure is bad for investors who hold large amounts of dollar assets, they will look for other investment channels, and if capital gains tax makes dollar assets less attractive, then people will have less incentive to hold dollars. This will damage the purchasing power of the dollar.

In addition, the market has not forgotten that inflation, which may be the main driver of gold later this year. Inflation expectations are at their highest level in years. We haven't seen a lot of measurable inflation because the velocity of money is quite low. But as infrastructure spending increases, the market thinks it will push up inflation at some point.

Gold prices have risen for the third week in a row, marking the first three consecutive weeks of gains since December. It is worth noting that this rally in gold prices coincided with a pullback in US bond yields from recent highs, while US bond yields have entered a new trading range since the pullback, and real yields have fallen again. The weaker dollar has also helped support precious metals prices. Perhaps markets have finally understood the Fed's message that they will not change their monetary policy stance as US economic data strengthen, dashing market expectations. After the Fed announces its final decision, the news is expected to be made public as the Fed releases its latest economic forecasts. But for now, the trend of real yields will lead the future of gold prices.

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