Biden “Rescue Plan” to Shower Newly Printed Currency on Economy (Podcast)
Biden “Rescue Plan” to Shower Newly Printed Currency on Economy Podcast by Mike Gleason for Money Metals
As investors await the incoming Biden administration and the uncertainties that a transition of power may bring, precious metals markets regained some ground through Thursday’s close but have pulled back again today, especially silver and platinum.
For the week, gold prices are down a slight 0.9% to come in at to $1,841 per ounce.
Meanwhile, the silver market shows a weekly loss of 2.4% to trade at $24.95 an ounce. Silver bulls still have some work to do to make up for last week’s steep drop and put 2021 on an upside trajectory. Until the $28 level is cleared decisively on the way to finally taking out $30 an ounce, traders can anticipate more back and forth grinding action here in the mid $20s.
Turning to platinum, it is outperforming a bit, although less so now after today’s price drop. Despite the healthy decline here today the white metal is still holding onto a slight weekly gain of 0.8% to trade at $1,093. Before the Friday pullback platinum was headed for its highest weekly close in over four years, but it looks now like that won’t happen.
And finally, palladium is putting in a weekly advance of 1.0% to command $2,430 per ounce.
Metals markets and financial markets have seemingly been unaffected by recent political turmoil. Investors have been nonchalant in the face of Capitol unrest and a second impeachment of President Donald Trump – not to mention fresh new records in daily COVID deaths.
Against this unfavorable backdrop, the stock market continues to hit new highs on an almost daily basis. Fundamental analysts are left scratching their heads as to what’s fueling such elevated valuations.
The most likely explanation is that there hasn’t yet been a downside catalyst powerful enough to take investors’ eyes off the prospect of more fiscal and monetary stimulus to come.