Gold and silver fell in tandem with equities today as COVID cases continue to rise and the effects of holiday travel continue to roll in, in the form of rising deaths and hospitalizations. The Biden Administration revealed some details of their proposed stimulus package which trumps December’s $900 billion relief bill. Stocks aren’t responding to the likelihood of new stimulus as they have in the past, however, with all major indices trading in the red. Even with today’s drop, gold and silver are looking to close the week up 1.5% and 3.0% respectively.
Gold and silver climbed today to their highest levels in nearly two weeks as the US dollar retreated slightly and has remained stagnant over the past month. Equities rose sharply with all major indices closing at record highs. The Nasdaq jumped 2% while the Dow and S&P 500 gained 0.8% and 1.4% respectively. Stocks had their best inauguration day in decades as investors seem ready to put the turmoil of this election behind them and embrace the certainty that came with today’s transfer of power, regardless of political affiliation.
Gold and silver dropped significantly today as the US dollar hit its highest level in over a month. Gold, which had spent the most of the week bouncing between $1,840 and $1,850 plunged as low as $1,822 today and silver fell nearly a dollar. For the week, gold and silver fell 1.1% and 2.6% respectively. Stocks didn’t perform much better, falling significantly on underwhelming retails sales for December and President-elect Biden’s proposed stimulus aid that pumps more money into relief checks and unemployment benefits and also proposes a federal minimum wage of $15. That’s right; equities, which had spent months rising on stimulus hopes, reversed course once something more concrete was presented since it didn’t meet investors’ expectations. For the week, the S&P 500 and Nasdaq both shed 1.5% while the Dow fell 0.9%.
Metals are up modestly today with gold and silver trading at $1,855 and $25.50, still well below last weeks highs. Gold seems to be holding steady right above its 200-day moving average of $1,853 and silver is currently about $0.15 above its 100-day moving average. Stocks are up slightly across all major indices with the Nasdaq leading the way as tech stocks, which had been underperforming the past few weeks, are once again outperforming other sectors, at least for now. The Nasdaq is currently up 0.70%, and the S&P 500 and Dow up 0.45% and 0.25% respectively.
Metals got a slight bump today as gold once again dipped below its 200-day moving average triggering a new round of buying from investors. Silver benefited too as it regained the $25 level after last weeks selloff. The US dollar rose about 0.50% today and equities declined across the board. The Nasdaq, which had been outperforming the other indices in recent months, got hit hardest, falling 165 points on an intense tech selloff.
Gold and silver had one of their worst days in months, plunging over $80 and $2.50 respectively at one point. The dip comes as equities once again closed at record highs, ignoring poor economic data. Nonfarm payroll jobs fell 140,000 in December, the first decline in 8 months (vs. 50,000 gain expected) and unemployment held steady at 6.7%. Due to the Fed’s increasing intervention in markets over the past 10 months and the increased likelihood of stimulus amid an underperforming economy, investors celebrated the abysmal jobs report leading to another record day on Wall Street. Physical metal demand for precious metals remains strong and many investors view today’s decline as a good buying opportunity.
Equities continued yesterday’s rally, un-phased by the events in D.C., and all three major indices closed at record highs today. The rally comes as markets are beginning to embrace a blue wave in Washington and what that means for future stimulus, which has been a driving force in market trends over the last several months. Metals were relatively quiet today, holding onto some of their gains while taking a backseat to stocks and Bitcoin—which continues to surge and is now trading near $40,000, more than double its price a month ago and a 35% increase this week.
After hitting record highs today, equities reversed course and fell sharply on surging COVID case numbers and election uncertainty ahead of tomorrow’s Georgia runoff. Markets love gridlock in Washington and polls are leaning towards a possible 50/50 split Senate, giving Democrats control with the Vice President’s tiebreaking vote. Precious metals, which soared earlier with stocks, are still strongly in the green to begin the new year, with gold and silver trading at $1,943.00 and $27.30, their highest levels since early-November and September respectively. Stocks are on pace for their worst opening day of a new year in decades, while metals are holding strong amid increasing uncertainty, which shows a divergent from recent months where equities and PMs moved in tandem.
Gold and silver climbed today in tandem with equities and are trading at $1,891.60 and $26.53 respectively, their highest levels since jumping Sunday night on positive stimulus news. Stocks rose sharply this morning as investors eye this new round of stimulus. Positive vaccine news continues to increase the appeal of equities. The Dow is currently up 70 points, and the Nasdaq and S&P are up 0.25% and 0.15% respectively, well off their highs today, but still poised to end in the green.
Gold is relatively flat to begin another shortened week, currently trading at $1,880 while silver is up 2.5% at $26.50, its highest level since December 21. Metals are getting boosted by rising equities which hit intraday record highs today after President Trump signed the $900 billion stimulus bill after threatening not to late last week. The Nasdaq and S&P 500 are currently up nearly 1% while the Dow is lagging, but still up 200 points or 0.7%.