empty
21.01.2021 03:47 PM
Gold has many prospects for growth

This image is no longer relevant

Prices on the precious metals market moved into a positive zone this morning. Gold is rising against the background of the continued weakening of the national currency of the United States of America, which in turn shows weakening due to growing hopes for the adoption of a more expanded program of fiscal stimulus for the country's economy after the official inauguration of the new president Joe Biden.

The price of gold futures contracts today on the trading floor in New York was higher by 0.27%, or $ 5, which allowed it to move to a new level – $ 1,871.5 per troy ounce. At the same time, support was at $ 1,800.8 per troy ounce, and resistance went to the area of $ 1,872.65 per troy ounce.

The price of silver futures contracts for delivery in March also jumped up quite significantly. The increase was 0.87%, and the new level was $ 25.99 per troy ounce.

The price of palladium increased by 0.63% and reached $ 2,386.78 per ounce.

Platinum rose 0.98% to $ 1,120.43 an ounce.

The price of copper futures contracts for March delivery jumped 0.48%. Its current level is now consolidating around $ 3.6630 per pound.

The main engine of precious metals remains the US dollar. Its weakness makes them significantly increase their value. It seems that this trend will linger for a long time. Recall that in the case of a reduction in the dollar, gold and other metals become more attractive to holders of foreign currency. Now there is every reason to believe that there are no reasons for the strengthening of the US national currency yet and it is unlikely to appear in the near future.

The dollar will continue to be under enormous pressure on the background of the adoption of a new program of financial incentives in the United States, which now has every chance of being ratified in the near future. Meanwhile, there are fears that it will not be adopted immediately and not in the volume announced by the newly-made leader of America, but in parts. However, this will not support the US dollar at all, but will only exacerbate inflationary risks.

Joe Biden's project to inject $ 1.9 trillion into the country's economy has already received approval in Congress, however, it was supported mostly by Democrats, and the margin of votes in favor of its adoption was minimal. However, then Janet Yellen, who is the main candidate for the post of US Treasury Secretary, announced that she would support, promote and refine this project before its final implementation because she believes that only in this way can we begin to get out of the protracted crisis associated with the coronavirus pandemic.

Thus, now all market participants are tuning in to the fact that inflation will rapidly gain momentum, the dollar will become cheaper, which means that it is time to think about how to save their assets. The "safe-haven" of gold, the popularity of which is almost inevitable, will come to the rescue. Consequently, the growth of prices in the precious metals market in the medium and long term is also quite real. Meanwhile, most experts still tend to believe that this year will be much more difficult for gold than even the previous one. More than once you will have to face the golden swings that will arise in situations of uncertainty.

Also, do not forget about the yield of government bonds of the United States of America, which will also have a significant impact on the movement of precious metals.

Maria Shablon,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for July 8

The US stock market shows restrained momentum amid uncertainty over Donald Trump's potential return to high tariffs. Although the US president has expressed a willingness to negotiate, market participants

Ekaterina Kiseleva 12:08 2025-07-08 UTC+2

Trade storm over Asia: Japan, Korea face 25% tariff hit

Japan, South Korea face 25% tariffs by Aug. 1 Australian dollar rises as RBA keeps rates on hold The pan-European STOXX 600 index (.STOXX) was unchanged at 543.22

Thomas Frank 10:52 2025-07-08 UTC+2

Canceled deals, fresh letters – marching toward trade chaos? Trader's calendar for June 7-9

Symbolically, it was on July 4, Independence Day, that Donald Trump signed what he himself called the "Big Beautiful Bill," which, according to the White House, will "fulfill campaign promises."

Svetlana Radchenko 14:07 2025-07-07 UTC+2

US Market News Digest for July 7

Donald Trump approved legislation establishing a new federal debt ceiling at $5 trillion and increasing government spending. The document includes tax cuts and enhanced security measures but has sparked controversy

Ekaterina Kiseleva 13:27 2025-07-07 UTC+2

Who

S&P 500, Nikkei Futures Fall on Trade Turmoil U.S. Marks Aug. 1 as Tariff Deadline for Some Countries Oil Prices Fall as OPEC+ Boosts Output Dollar Rebounds from Recent Four-Year

Thomas Frank 10:40 2025-07-07 UTC+2

S&P, Nasdaq, and Dow climb in sync as markets digest jobs data and trade developments

The S&P 500 rose by 0.83%; the Nasdaq gained 1.02%; the Dow advanced by 0.77%. US job growth exceeded expectations in June. Tripadvisor rallied on Starboard Value's report. Synopsys

13:11 2025-07-04 UTC+2

US Market News Digest for July 4

The S&P 500 and Nasdaq stock indices rose by 0.83% and 1.02%, respectively, hitting new all-time highs. Index futures, however, retreated due to concerns over the potential introduction

Ekaterina Kiseleva 12:45 2025-07-04 UTC+2

S&P, Nasdaq, Dow rally as markets react to jobs, trade policy surprises

S&P 500 up 0.83%; Nasdaq up 1.02%; Dow up 0.77% U.S. job growth beats expectations in June Tripadvisor rises on Starboard Value report, gaining share Synopsys, Cadence rise as U.S

Thomas Frank 08:23 2025-07-04 UTC+2

What could tip USD: NFP, Fed moves, or Big Beautiful Bill?

Wall Street keeps churning out record after record. On Wednesday, the S&P 500 , driven by IT giants, once again set a fresh all-time high. The catalyst was not only

Svetlana Radchenko 13:17 2025-07-03 UTC+2

US Market News Digest for July 3

The S&P 500 index once again reached an all-time high thanks to sustained demand for technology stocks and a positive reaction to the US-Vietnam trade agreement on tariffs. Investors

Ekaterina Kiseleva 12:58 2025-07-03 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.