Gold reverses course in overnight market, gives most of it back in early U.S. trading

(USAGOLD –1/12/2021) – Gold reversed course in the overnight market after finding support near the $1850 level, then gave back most of those gains early in the U.S. trading session after being up almost $18. The yellow metal is now up $2.50 on the day at $1848.  Silver is up 34¢ at $25.33. After all is said and done, gold is down about 5% year to date. Silver, the more volatile of the primary precious metals, is down just over 7% so far this year. We invite you to read the post immediately below for a more detailed view of the latest correction.

Sovereign Man’s Simon Black sees trouble ahead for the dollar once the spending and monetary policies envisioned under the new Biden administration are fully deployed, and that could resonate in the gold market. “[T]here will likely be plenty of cooperation between the Fed and Treasury to print absurd quantities of money this year,” he writes in his outlook for 2021. “Certainly, there will be some bondholders who extend their securities. But most likely the Fed will need to print another $3+ trillion, pushing its balance sheet beyond the $10 trillion mark. And if they really go down this destructive path– $30 trillion national debt, a $10 trillion Fed balance sheet– then 2021 may be the year that the world finally loses confidence in the US dollar. On another note… We think gold could DOUBLE and silver could increase by up to 5 TIMES in the next few years.”

Chart of the Day

bar chart showing US Mint sales of silver bullion coins through 2020

Chart courtesy of GoldChartsRUs • • • Click to enlarge

Chart note:  U.S. Mint silver bullion coin sales surged in 2020, posting their best year since 2016, and the new year is off to a strong start if activity at USAGOLD is any indicator.

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