Phil Carr
The Gold & Silver Club
Gold prices have made a strong recovery from March lows, boosted by President Joe Biden's massive $2.3 trillion infrastructure stimulus plan.
Similar to the $1.9 trillion stimulus plan signed only a few weeks ago – Biden’s new package will involve pumping hundreds of billions of dollars into improving the nation’s aging roads, bridges, schools, railways, waterways, airports and cellular network.
Biden’s multi-trillion dollar infrastructure bill is expected to spur the nation's biggest buying spree in commodities, which further suggests that we could be on verge of a supercycle, as demand outstrips supply this year.
Looking ahead to this week, trader’s attention has now shifted to Minutes from the Federal Reserve’s most recent meeting on monetary policy, due for release on Wednesday. The minutes are expected to provide some clarity into continuing debates at the central bank about the trajectory of the economic recovery, inflation and the recent rise in U.S borrowing costs.
Other key macro events this week will include; speeches from various FOMC members, the ISM Non-Manufacturing Report and PPI data.
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 holds above 1.0400 in quiet trading
EUR/USD trades marginally higher above 1.0400 in the second half of the day on Friday. The absence of fundamental drivers and thin trading conditions on the holiday-shortened week make it difficult for the pair to gather directional momentum.
GBP/USD recovers to 1.2550 area following earlier decline
GBP/USD regains its traction and trades in positive territory near 1.2550 after declining toward 1.2500 earlier in the day. Nevertheless, the cautious market mood limits the pair's upside as trading volumes remain low following the Christmas break.
Gold struggles to build on weekly gains, holds above $2,620
Gold enters a consolidation phase and trades below $2,630 on Friday after posting modest gains on Thursday. The risk-averse market atmosphere helps XAU/USD limit its losses as investors refrain from taking large positions heading into the end of the holiday-shortened week.
Bitcoin misses Santa rally even as on-chain metrics show signs of price recovery
Bitcoin (BTC) price hovers around $97,000 on Friday, erasing most of the gains from earlier this week, as the largest cryptocurrency missed the so-called Santa Claus rally, the increase in prices prior to and immediately following Christmas Day.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
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