US Dollar Index And Stimulus Bill Fuel Precious Metal Markets

GOLD

The U.S. Dollar Index breaking below 90, reaching a low 89.75, gave fuel to the precious metal markets. Combine that with a positive move on the $900 billion COVID-19 aid stimulus bill and Gold kept on going higher. Gold reached a high of $1,897 before seeing some light short-term profit-taking. The next level for Gold this year is $1,900 and as I have said, December historically has been a good month for precious metal prices. At 11 am PT today, Gold is trading at $1,885 per ounce, up $33 on excellent volume.

SILVER

Silver reached a high of $26.14 in early European and U.S. trading. Silver definitely lead the precious metal rally today. The weaker dollar is a strong positive for Gold, but a $900 billion stimulus bill is inflationary and strongly positive for Silver. I just posted a news article on our website talking about how silver prices my surge next year on solar panel and 5G demand, definitely worth reading. At 11 am PT today, Silver is up $1.07 per ounce, trading at $25.95 on excellent volume.