Renewed Stimulus Talks Helps Gold Rally

GOLD

A weaker U.S. Dollar (91.27), combined with renewed congressional discussion about a Covid-19 stimulus legislation helped Gold rally today. Gold reached the important $1,800 level in European trading and when it broke above, we saw short-covering. That short-covering caused Gold to reach a high of $1,815 before seeing some light short-term profit taking. Strong physical demand from India and China also helped Gold break above the key $1,800 level. At 11am PT today, Gold is up (2%) $36 per ounce, trading at $1,816 on excellent volume.

SILVER

Today’s Silver rally was far better than Gold, up over $1.00 in early trading. With all the stimulus money coming from European and Asian nations right now, there is starting to be serious concerns about inflation in 2021. Always, remember that Silver will benefit more from inflation cycle than Gold. At 11am PT today, Silver is trading at $24, up $1.40 (6.2%) for the day on excellent trading volume.