All eyes on US government stimulus for gold and silvers next big move [Video]
|Precious metal prices received a huge boost this week after the Federal Reserve pledged to continue its massive quantitative easing program until 2024 at the earliest.
Gold and Silver prices skyrocketed on Wednesday following the FOMC’s final policy meeting of 2020, when Fed Chairman Jerome Powell “made it very clear that interest rates will remain zero until 2024 and they are fully committed to pushing inflation higher”.
Given rising inflation expectations, weakening dollar and still no clear end in sight to the pandemic – demand for safe-haven inflation hedges should remain well supported ahead – ultimately continuing to drive precious metal prices higher throughout 2021.
Traders’ attention has now shifted to U.S Government stimulus for clues on Gold and Silvers next big move.
U.S. Congress appears to be making progress on a new fiscal stimulus package for Americans. The recent wave of lockdown measures has severely weighed on the economic recovery, prompting the need for more stimulus urgently before year-end. On Thursday, U.S lawmakers from both parties hinted that failure to agree to a deal was no longer an option.
Any stimulus is good stimulus. The only question now, is how much and when.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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