Phil Carr
The Gold & Silver Club
The biggest feature of the market this week will be President Joe Biden's huge $3 trillion green energy and infrastructure plan.
With the ink on the $1.9 trillion stimulus package barely dry, this week sees President Biden push ahead with his $3 trillion “Build Back Better” green energy and infrastructure plan.
The Democrats got around Biden’s $1.9 trillion stimulus plan by using budget reconciliation processes, but the next initiative, which is expected to be even bigger, won’t rely just on government debt as a funding source.
According to comments from Treasury Secretary Janet Yellen, “the next stimulus bill will have to be paid for through higher tax rates”. This will include an increase on the corporate tax rate from 21% to 28%, as well as significant hike on the individual tax rate for high earners.
Once the $3 trillion green energy and infrastructure bill makes its way into the economy, it’s the industrial metals that will inevitably benefit the greatest from the recovery trade. It's little wonder why traders have nicknamed Silver, Copper and the Platinum Group Metals (PGMs) – the "trillion dollar trio".
Other key events that traders will be watching closely this week include; ADP Employment Change and Jobless Claims as well as the biggest event of the week – Non-Farm Payrolls data on Friday.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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Editors’ Picks
EUR/USD bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
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