Gold continues its late-year advance as Fed pledges accomodative policy and Congress reportedly nears agreement on stimulus

(USAGOLD – 12/17/2020) – Gold continued its late-year advance this morning as Congress reportedly neared agreement on a stimulus plan and the Fed pledged an accommodative policy stance well into the future.  A much weaker dollar in international markets also contributed to the upside. The U.S. Dollar Index fell below 90 this morning for the first time in two years. The yellow metal is up $22 at $1889. Silver is up 58¢ at $26.01.

“December to February tends to bring some of the biggest gains for gold,” writes long-time market analyst Peter Krauth in an article posted at the GoldEagle website, “starting with Christmas holiday buying, then topping out with Chinese New Year purchases in late February. Add in a late January presidential inauguration, combined with growing expectations for more stimulus, further supported by a few more challenging winter months of Covid-19 restrictions, and gold could well soar.” He sees gold rising to all-time highs in major currencies including the dollar with a target of $2300 sometime in 2021. “Now’s the time for gold,” he says. “Buy the dips.”

Chart[s] of the Day

Gold
(5-year, in percent)

line chart showing increase in the price of gold as a percent from 2016 to present

Dow Jones Industrial Average
(5-year, in percent)

line chart the increase in the DJIA as a percent from 2016 to present

Charts courtesy of TradingEconomics.com • • • Click to enlarge

Chart note:  Over the past five years, both gold and the Dow Jones Industrial Average advanced about 75%.

Share
This entry was posted in Daily Market Report, dailyquotes, Today's top gold news and opinion. Bookmark the permalink.