Up or down – Where are precious metal prices heading next? [Video]

Phil Carr The Gold & Silver Club

After an explosive start to the year, precious metal prices pulled back on Friday amid profit-taking – as trader’s attention now shifts to President-elect Joe Biden’s inauguration.

Last week, political wins by Democratic candidates in two Senate runoff races in Georgia paved the way for lot more stimulus in 2021 from President-elect Joe Biden after he takes office on January 20.

With the confirmation of Democrats controlling all three branches of government, this “Blue Wave” is expected to create trillions of dollars in new stimulus measures once Biden enters the White House later this month.

Elsewhere, Friday’s closely watched employment report showed that the U.S. lost jobs in December for the first time in eight months as the spread of coronavirus and variants of the COVID-19 forced fresh lockdowns in parts of the country.

Traders are now convinced that Biden will go big on a pandemic relief package during his first 100 days in office to revive growth and prevent a sharp economic turndown.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Author

Phil Carr

The Gold & Silver Club

Phil is the co-founder and Head of Trading at The Gold & Silver Club, an international Commodities Trading Firm specializing in Metals, Energies and Soft Commodities.

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.