Gold (and Silver) Rush 2021
After hedging for several days, we learn this morning the president will sign Congress’s next stimulus bill. However, begrudgingly.
The president’s bone of contention is with the scope of the stimulus package. While Congress’s bill includes $600 checks for individuals (with a few caveats), the president sided with Democrats, saying the bill doesn’t go far enough…
Parsing the next round of economic stimulus has made for strange bedfellows. “Democrats were quick to back Mr Trump’s demand for more generous stimulus checks, which would boost the overall size of the package substantially,” says the Financial Times.
As if that’s not strange enough, Sen. Elizabeth Warren agrees with Trump “100 per cent” on $2,000 pandemic relief checks.
Could 2020 get any weirder? Where do our readers fall on the stimulus bill? Do you side with the president — and Democrats — or with Sen. Mitch McConnell and company?
Send your opinions to, TheRundownFeedback@SevenFigurePublishing.com.
Your Rundown for Monday, Dec. 28, 2020…
(Silver) and Gold Rush
“Over 2020 as a whole,” Bloomberg reports, “gold has benefited from a steady weakening of the U.S. currency since it peaked in March, as well as from unprecedented fiscal and monetary stimulus.”
So on news that Trump will sign the 5,000-plus page stimulus bill, the dollar’s weakened and — you got it — gold’s rallied. The price of gold has risen to as much at $1,900.31 per ounce. Gold, in fact, is heading back into heady territory not seen in six weeks.
Furthermore, “bullion is set to post the first monthly gain since July after a run of losses prompted by the development of effective coronavirus vaccines.”
And gold is poised for its biggest yearly gain since 2010… What’s the forecast for gold in 2021?
“Sentiment in the gold market is extremely bullish with many analysts expecting prices to retest August’s all-time highs above $2,000 an ounce,” Kitco reports after surveying over 1,000 respondents.
“Gold is expected to perform well as interest rates are expected to remain low through 2023,” Kitco continues. “At the same time, inflation is expected to pick up as the economic recovery picks up.”
Per Kitco’s survey, however, gold’s pegged as the third best-performing precious metal — behind (1) silver and (2) copper.
Kitco says: “A total of… 56% [of those surveyed] said they expect silver to fare better than other metals in the year ahead.
“The bullish outlook for silver comes as the precious metal has seen a historic rally since falling to $12 an ounce due to financial market turmoil due to the COVID-19 pandemic. Since its lows, silver prices have rallied more 115%.”
Anticipate an extended gold — and silver — rush in 2021.
Market Rundown for Monday, Dec. 28, 2020
S&P 500 futures are up 28 points to 3,720.
Oil’s barely in the red at $48.11 for a barrel of WTI.
Gold’s rallying hard — up $12.10 to $1,895.30 per ounce.
Bitcoin is bonkers; this morning it’s up $504.25 to $27,200.
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Hope you enjoyed a meaningful — albeit different — Christmas holiday. Looking forward to next year…
For the Rundown,