Gold, silver take a breather after yesterday’s solid gains, poised for a run at key levels
(USAGOLD – 1/21/2021) – Gold looks to be taking a breather after yesterday’s solid gains. It is down $4 at $1869. Silver is down 4¢ at $25.89. Both look to be poised for a run at key levels – $1900 for gold and $26 for silver. Van Eck’s Joe Foster sees the same set of drivers that pushed gold higher in 2020 remaining in force for 2021 – market distortions (the mania), the huge debt load shouldered by both governments and corporations, worries over the Biden-effect, a possible vaccination-induced reenactment of the Roaring 20s (inflation), and persistent dollar weakness.
“Gold,” he says in a report released by the firm yesterday, “has been in a bull market since December 2015. The chart pattern of this market looks similar to the first five years of the 2001 to 2011 bull market. It will be interesting to see if the chart similarities continue. After 2006, the former bull market found catalysts in the 2008 Global Financial Crisis and the European Debt Crisis in 2010. The current bull market will certainly need further catalysts to realize similar gains. The risks we have outlined along with the dollar’s trend could provide such catalysts.”
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