Price gains in gold, silver and bulls have momentum

(Kitco News) -  Gold and  silver futures prices are higher in early U.S. trading Wednesday. Silver notched a five-week high. Precious metals bulls at mid-week are focusing on the prospects of more  liquidity in the global marketplace sparking better consumer demand for metals, including the specter of problematic price inflation from all the monetary stimulus. The gains in gold and silver this week come despite keener risk appetite in the marketplace. February gold futures were last up $6.20 at $1,861.60 and March Comex silver was last up $0.621 at $25.265 an ounce. 

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings, and near the recent record highs, when the New York day session begins. The U.S. and other countries have rolled out Covid-19 vaccines in rapid fashion as there appears to be light at the end of the dark pandemic tunnel. The U.K. and the European Union appear to be getting closer to a smooth Brexit deal, and U.S. congressional Democrats and Republicans may be inching closer to a new financial stimulus package for Americans. Both parties have agreed some members won’t leave Washington, D.C., for the holidays until a deal is done.

The economic data point of the day and arguably of the week is today’s conclusion of the U.S. Federal Reserve’s Open Market Committee (FOMC) meeting that began Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell, including the Fed’s economic projections. The marketplace will parse words and comments from Fed officials, for clues on U.S. monetary policy direction in 2021. Most believe the Fed will keep its very accommodative monetary policy. That’s bullish for the metals. Specifically, the marketplace wants more guidance on the Fed’s bond-buying program (quantitative easing), as the Fed has said it plans to give an update on the matter.