#Biden #spending #gold
“Mr. Biden’s plan to unleash another massive stimulus package on the market delights the Gold Bugs“– Paul Ebeling
Thursday, Gold futures closed +16.60 at 1,758.20oz, its highest mark since late February, as the USD and Treasury yields faded a some.
Gold Bugs once only lived on Wall Street. Now the live on Main Street too, and a Mr. Biden’s promise to add multiple lanes, paving the way for the next stunning discovery of coins, bullion and stock to soar.
In August, in the Summer of the VirusCasedemic, gold broke above the psych mark at $2,000oz and although it has backed and filled it has continued to show the forces that fuel a furious rallies.
Gold mining stocks performed even better, outpacing physical gold by a significant amount., But the really big gainers were found in the explosive junior explorers …
Canadian junior Amex Exploration (TSX-V:AMX) is up a juicy 128% over the past 12 months and a staggering 800% over the past 5 yrs.
As of the Mr. Biden’s inauguration, gold’s outlook has improved even more dramatically. Mr. Biden is now talking about another massive stimulus package on the market, much to the delight of Gold Bulls.
In 2-H of Y 2020, gold began to lose some momentum, with prices pulling back 10% from the August all-time high as a barrage of potential Covid-19 vaccine candidates gave the world hope that the worst could finally be in the scrapbook.
Fast Forward: A big debate in Washington now is about another giant stimulus package, which could give the gold rally some needed fuel.
The market is expecting more fiscal stimulus measures to be “announced very soon,” after Schoolmarm Yellen told the Senate Financial Committee that the US should “act big” on ginning the economy.
After all, the US and global economies remain weak due to the VirusCasedemic and persistent lockdowns that are keeping businesses from operating at full capacity.
The unemployment situation is already dire, with US jobless claims on another uptrend and the Fed wants a string of 1-M jobs created monthly to get back to normal.
Chairman Powell’s statement Thursday says the economy still needs another huge shot in the arm speaks volumes about the state of the economy, which is exactly the kind of uncertainty that drove gold to its record rally in Y 2020.
Bank of America sees gold at $3,000oz at the end of Y 2021. My 2020 call was at 2,500, but is pushed to the end of Y 2021.
Have a healthy day, Keep the Faith!