Price rebounds for gold, silver, after Wednesday's losses

  • 01/07/2021
  • Source: Kitco
  • by: Jim Wyckoff
Price rebounds for gold, silver, after Wednesday's losses
(Kitco News) -  Gold and  silver futures prices are higher in early U.S. trading Thursday, on a rebound from the strong selling pressure seen on Wednesday. Gains in the two precious metals are tepid, however, as the U.S. and global stock markets continue to power higher. February gold futures were last up $8.90 at $1,917.30 and March Comex silver was last up $0.163 at $27.205 an ounce. 

Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The stock and financial markets appeared to ignore the protesters that stormed and then occupied for several hours the U.S. Capitol Wednesday afternoon. Congress was disrupted but a few hours later voted to confirm Joe Bident as the next U.S. president. There was also, at least initially, not much markets reaction to the two Georgia U.S. Senate seats that went to the Democrats and gave them the majority in the Senate and in Congress. 

Said one market analyst in an email dispatch Thursday morning, “The reflation trade is back on,” referring to the likely big government spending by the Democrats in the next couple years. Indeed, an examination of the actions of the raw commodity futures markets sees many of them rallying to multi-month or multi-year highs, led by Nymex crude oil futures surging to a 10-month high of $51.28 a barrel overnight. The U.S. dollar index has rebounded Thursday from a 2.5-year low hit on Wednesday. Still, the USDX is in deep technical trouble as a price downtrend remains firmly in place. The other market suggesting inflation is on the rise is the U.S. Treasury market, whose 10-year note yield this week has pushed above 1.0%. Thursday the 10-year was yielding 1.044%.
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