Fed Will Continue To Be Very Accommodating

GOLD

Gold rallied with Silver this morning reaching a high of $1,865 before seeing a lot of volatility and short-term profit-taking. Yesterday, Federal Reserve Chairman Powell said that he welcomes increased inflation as we are a long way from any recovery. Powell said the Fed will continue to be very accommodating providing funding for the financial and real estate markets and by keeping interest rates very low. This is good news for the Gold price, combined with sizeable COVID-19 stimulus legislation, it should put the price back on the bullish track. At 11 am PT today, Gold is trading at $1,842, about unchanged from yesterday.

SILVER

Silver briefly rallied over $1.70 per ounce this morning, breaking above the $27 resistance level. Demand was caused by an army of day-traders buying based on an analyst stating Silver is worth a minimum of $40 or higher. See article At 11 am PT today, Silver is up $0.65, trading at $26.01 on extraordinary volume.