Senate Race Good For Precious Metals

GOLD

Today, the Gold market aggressively attacked the next resistance level of $1,950 per ounce, reaching a high of $1,953 before seeing some light short-term profit-taking. Demand remains strong worldwide, which normally happens in January. At 11 am PT today, Gold is trading at $1,951 per ounce, up $8 on good volume.

Georgia On My Mind

Yesterday, I was talking to an old friend, who is a commodity floor trader. He shared with me what was one of the main reasons for Gold’s $50 rallied yesterday. It was the Georgia senate race. The polls are showing that both democrats are narrowly leading. He believes if the Democrats take control of the Senate, there will be massive Federal Reserve spending and a large congressional stimulus bill. Which would be negative for the equity markets and the dollar, and great for the price of precious metals.

SILVER

After Silver’s $0.90 rally yesterday, breaking the key $27 level, has surprisingly stayed above $27 all day. Silver has traded between $27.15 and $27.62 today, showing very little weakness. At 11 am PT today, Silver is up $0.32, trading at $27.52 on good volume.