Prices of precious metals were mixed this morning but still exhibited a restrained growth. Market participants appreciated the new plan to stimulate the country's economic recovery, which was presented to the general public yesterday by US President-elect Joe Biden, who is actively preparing for his inauguration. The fact that the size of the stimulus package will be significantly increased has significantly improved investor sentiment.
Gold futures for February delivery on the trading floor in New York rose 0.09% or $1.7, to $1,853.5 per troy ounce. The level of support amounted to $1,817.1 per troy ounce, and resistance was $1,864 per troy ounce.
On the other hand, the price of silver futures contracts for delivery in March is still in the negative zone decreasing 0.5% to $25.672 per troy ounce.
The price of copper futures contracts for delivery in March also sank by 0.57%, to $3.6505 per pound.
Yesterday, President-elect Joe Biden made a speech, in which he spoke in detail about what measures he is going to introduce in order to return the country's economy to growth. The central topic of discussion was the $1.9 trillion stimulus program, which was already approved by Congress as the entire Democratic party gave a positive response to its implementation. Of course, the very amount of the stimulus package could not fail to attract the attention of investors, who received even more confirmation that the prospects for growth in the precious metals market are quite justified.
The very fact that monetary policy in the U.S. is becoming even softer is a negative call for the country's national currency, the rate of which will immediately begin to move down. The fall will happen in the sector of government securities yields. And all of this, taken together, can have a positive effect on the value of gold, which acts as the most convenient and already traditional instrument for insuring against inevitable inflationary risks.
The fact that Joe Biden's speech had already negatively affected the stock markets became evident almost immediately. Yesterday's trading on both the US and Asian stock markets was negative, with an overall decline in major stock indexes by the end of the trading session. Moreover, the US dollar observed another fluctuation.
Now, more than ever, it is clear that business in the precious metals market will improve, which means that it is worth expecting a rather significant increase in value. According to most experts, all those factors that are now driving forces act as support for metals, and not vice versa. In any case, some analysts point to a very rapid rise in the value of gold, which may even surpass the $2,000 mark per troy ounce. But these are rather medium-term prospects, and in the near future, we will inevitably have to face exchange rate fluctuations.
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