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Gold and Silver Surge As Yields Drop And Geopolitical Tensions Rise

By:
Gary S.Wagner
Published: Apr 15, 2021, 23:11 GMT+00:00

Today both gold and silver had substantial gains as yields dropped for U.S. 10-year Treasury notes to 1.56%, and geopolitical tensions rose between the United States and China as well as Russia.

Gold Bars

As of 4:40 PM EST gold futures basis the most active June 2021 Comex contract is currently trading up $28.10 (+1.62%) and is fixed at $1764.40. Silver basis the most active May 2021 Comex contract, is currently trading up $0.40 (+1.57%) and fixed at $25.925.

gold april 15

The economy in the United States is exhibiting solid economic recovery which has raised genuine concerns that inflation will continue to rise. However, the largest force moving both gold and silver higher is yields dropping in 10-year notes, which fell today to yield 1.56%.

silver april 15

In addition to that, there is rising tension between the United States and China, as well as between the United States and Russia. In regards to the increased tension with China, it seems that Taiwan is once again a major concern to the current administration.

In addition, President Joe Biden today signed an executive order imposing new sanctions on Russia based on information suggesting that they had interfered with our election as well as an increased amount of internet hacking and other “malign activities” which include sending additional troops to Ukraine as well as the continuation of persecution of Russian dissidents in specifics to Alexei Navalny.

On April 15, the White House issued an “Executive Order on Blocking Property with Respect to Specified Harmful Foreign Activities of the Government of the Russian Federation.” The full Executive Order can be read by following this link.

The Executive Order is sanctioning Russia with financial sanctions, including a ban on U.S. financial institutions from participating in the primary market for the ruble as well as non-ruble denominated bonds. It also designates six technology companies run by Russia, accusing them of supporting the country’s intelligence services and block the property that they or their affiliates might detain in the United States, among other sanctions.

This Executive Order is certainly indicating that the administration is willing to impose rigid and far-reaching new sanctions against Russia.

Lastly, there is the issue of growing debt based upon the expenditures over the last two years in regards to reigniting the economy in the United States, which has been so severely affected by the pandemic. These events collectively could certainly be the impetus for both gold and silver to continue to rise higher as they have in trading today.

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Wishing you, as always, good trading and good health,

Gary Wagner

 

About the Author

Gary S.Wagnercontributor

Gary S. Wagner has been a technical market analyst for 35 years. A frequent contributor to STOCKS & COMMODITIES Magazine, he has also written for Futures Magazine as well as Barron’s. He is the executive producer of "The Gold Forecast," a daily video newsletter. He writes a daily column “Hawaii 6.0” for Kitco News

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