Precious Metal Prices Firm On Stimulus Hopes – What’s Next?Last week silver took centre-stage rallying over 13% to hit $30 an ounce for the first time since 2013. That’s silver’s biggest one-day move since 2008.
Usually, when one commodity goes the others follow suit, very quickly. Silver explosive rally also pulled many other commodities higher including gold, platinum, palladium and crude oil, which soared past $60 a barrel for the first time in more than a year.
Crude has been on a tear for weeks, fuelled by hopes that President Biden’s huge stimulus deal is now edging ever closer. Brent has surged over 63% since November, whilst WTI crude oil has climbed 59%, during the same period.
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Elsewhere, precious metal prices edged higher on Monday, as weaker-than-expected U.S. jobs data re-ignited concerns over a recovery in the world’s largest economy. The closely watched U.S employment report showed job losses in December, November and January were deeper than expected, underscoring the need for additional stimulus.
Looking ahead to this week, the major focal point for traders will be progress on President Biden’s COVID-19 relief package. On Friday, President Biden used the weak U.S employment data as ammunition to push ahead with a massive $1.9 trillion economic stimulus package, which could be passed in the coming day or weeks.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: