Gold and silver rebound after dipping below their previous highs. Investors see golden opportunity for a second chance.
Gold and Silver prices have lowered midday U.S. trading, on Tuesday, dipping below the previous $2,000 benchmark, however picking back up today. Encouraging economic numbers and hopes of a new coronavirus relief package boosted the S&P 500 to near-record highs.
Traders and investors put risk back on the table today, possibly due in part to news overnight that Russia has approved a Covid-19 vaccine. However, global health experts are very skeptical and cautioning that the Russian vaccine is premature because it has not gone through full trials that the U.S. and other countries require for approval.
On a day when gold prices were down around $90 an ounce and silver down over $3, there were also various opinions and speculation about what it means for the right time to buy.
For the prudent trader and investor, some price perspectives from action seen over the last few months would be beneficial to get a big-picture view of where prices have been and where they will be going. Gold and silver prices have seen major appreciation over the past few months and from a longer-term technical perspective, today’s declines are hardly a minor speed bump.
Still, trading for the duration of this week will be highly critical for both gold and silver markets, and how they close by week’s end will be very telling. At the moment, markets are expected to recover over the next few days and finish the week strong.
Global stock markets rallied Tuesday and the U.S. stock indexes are already higher at midday. Besides the Russian COVID vaccine news, there are reports the U.S. Congress and President Trump may be inching a bit closer to agreeing upon a new government stimulus package for Americans, and that’s also a positive for marketplace sentiment. Also, the new Covid-19 cases in the U.S. are starting to drop just a bit.
That said, the U.S. dollar index is modestly down. The yield on the benchmark 10-year U.S. Treasury note is presently around 0.6%.
Driven by expectations of another stimulus and a weaker U.S. dollar in the face of a surge in coronavirus cases, the gold rally hit a bump in the road with some encouraging market numbers but is looking to build momentum again as we’re getting closer to this November’s election. With Biden’s big reveal of his progressive running mate and VP pick, Kamala Harris, it will be interesting to see how both the stock and gold markets will respond.