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:
Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.