All eyes on US government stimulus for gold and silvers next big move [Video]

Phil Carr The Gold & Silver Club

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:

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.